10-Q 1 aee-2015q1.htm 10-Q AEE-2015 Q1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 
ý
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 2015
OR
 
¨
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from             to
 
Commission
File Number
  
Exact name of registrant as specified in its charter;
State of Incorporation;
Address and Telephone Number
  
IRS Employer
Identification No.
1-14756
  
Ameren Corporation
  
43-1723446
 
  
(Missouri Corporation)
  
 
 
  
1901 Chouteau Avenue
  
 
 
  
St. Louis, Missouri 63103
  
 
 
  
(314) 621-3222
  
 
 
 
 
1-2967
  
Union Electric Company
  
43-0559760
 
  
(Missouri Corporation)
  
 
 
  
1901 Chouteau Avenue
  
 
 
  
St. Louis, Missouri 63103
  
 
 
  
(314) 621-3222
  
 
 
 
 
1-3672
  
Ameren Illinois Company
  
37-0211380
 
  
(Illinois Corporation)
  
 
 
  
6 Executive Drive
  
 
 
  
Collinsville, Illinois 62234
  
 
 
  
(618) 343-8150
  
 
Indicate by check mark whether the registrants: (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.
 
Ameren Corporation
  
Yes
  
ý
  
No
  
¨
Union Electric Company
  
Yes
  
ý
  
No
  
¨
Ameren Illinois Company
  
Yes
  
ý
  
No
  
¨
Indicate by check mark whether each registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
 
Ameren Corporation
  
Yes
  
ý
  
No
  
¨
Union Electric Company
  
Yes
  
ý
  
No
  
¨
Ameren Illinois Company
  
Yes
  
ý
  
No
  
¨
Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.



 
 
  
Large Accelerated
Filer
  
Accelerated
Filer
  
Non-Accelerated
Filer
  
Smaller Reporting
Company
Ameren Corporation
  
ý
  
¨
  
¨
  
¨
Union Electric Company
  
¨
  
¨
  
ý
  
¨
Ameren Illinois Company
  
¨
  
¨
  
ý
  
¨
Indicate by check mark whether each registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 
Ameren Corporation
  
Yes
  
¨
  
No
  
ý
Union Electric Company
  
Yes
  
¨
  
No
  
ý
Ameren Illinois Company
  
Yes
  
¨
  
No
  
ý
The number of shares outstanding of each registrant’s classes of common stock as of April 30, 2015, was as follows:
 
Ameren Corporation
 
Common stock, $0.01 par value per share - 242,634,798
Union Electric Company
 
Common stock, $5 par value per share, held by Ameren
Corporation - 102,123,834
Ameren Illinois Company
 
Common stock, no par value, held by Ameren
Corporation - 25,452,373
 
______________________________________________________________________________________________________ 
This combined Form 10-Q is separately filed by Ameren Corporation, Union Electric Company, and Ameren Illinois Company. Each registrant hereto is filing on its own behalf all of the information contained in this quarterly report that relates to such registrant. Each registrant hereto is not filing any information that does not relate to such registrant, and therefore makes no representation as to any such information.



TABLE OF CONTENTS
 
 
Page
 
 
 
 
 
 
 
 
Item 1.
 
 
 
 
 
 
Union Electric Company (d/b/a Ameren Missouri)
 
 
 
 
Ameren Illinois Company (d/b/a Ameren Illinois)
 
 
 
 
Item 2.
Item 3.
Item 4.
 
 
 
 
 
 
Item 1.
Item 1A.
Item 2.
Item 6.
 
 
This report contains “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements should be read with the cautionary statements and important factors under the heading “Forward-looking Statements.” Forward-looking statements are all statements other than statements of historical fact, including those statements that are identified by the use of the words “anticipates,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” and similar expressions.




GLOSSARY OF TERMS AND ABBREVIATIONS
We use the words “our,” “we” or “us” with respect to certain information that relates to Ameren, Ameren Missouri, and Ameren Illinois, collectively. When appropriate, subsidiaries of Ameren Corporation are named specifically as their various business activities are discussed. Refer to the Form 10-K for a complete listing of glossary terms and abbreviations. Only new or significantly changed terms and abbreviations are included below.
Form 10-K - The combined Annual Report on Form 10-K for the year ended December 31, 2014, filed by the Ameren Companies with the SEC.
Net shared benefits - The value of the energy savings that are shared by Ameren Missouri and its customers under the MEEIA, net of the program costs to achieve those energy savings.
 
FORWARD-LOOKING STATEMENTS
Statements in this report 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 statements have been made in good faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include (without limitation) statements as to future expectations, beliefs, plans, strategies, objectives, events, conditions, and financial performance. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, we are providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. The following factors, in addition to those discussed under Risk Factors in the Form 10-K, and elsewhere in this report and in our other filings with the SEC, could cause actual results to differ materially from management expectations suggested in such forward-looking statements:
regulatory, judicial, or legislative actions, including changes in regulatory policies and ratemaking determinations, such as the MoPSC’s April 2015 electric rate order; Ameren Missouri's December 2014 MEEIA filing; Ameren Illinois’ April 2015 annual electric delivery service formula update filing; Ameren Illinois' January 2015 natural gas delivery service rate case filing; a settlement agreement requiring FERC approval for an Ameren Illinois electric transmission rate refund and a prospective reduction to common equity for ratemaking purposes; the complaint cases filed with the FERC seeking a reduction in the allowed base return on common equity under the MISO tariff; and future regulatory, judicial, or legislative actions that seek to change regulatory recovery mechanisms;
the effect of Ameren Illinois participating in a performance-based formula ratemaking process under the IEIMA, including the direct relationship between Ameren Illinois' return on common equity and 30-year United States Treasury bond yields, the related financial commitments
 
required by the IEIMA, and the resulting uncertain impact on the financial condition, results of operations, and liquidity of Ameren Illinois;
our ability to align our overall spending, both operating and capital, with regulatory frameworks established by our regulators in an attempt to earn our allowed return on equity;
the effects of increased competition in the future due to, among other factors, deregulation of certain aspects of our business at either the state or federal level;
changes in laws and other governmental actions, including monetary, fiscal, tax, and energy policies;
the effects on demand for our services resulting from technological advances, including advances in customer energy efficiency and distributed generation sources, which generate electricity at the site of consumption;
the effectiveness of Ameren Missouri's customer energy efficiency programs, and the related amount of any net shared benefits and performance incentive earned under the current and proposed MEEIA plans;
the timing of increasing capital expenditure and operating expense requirements and our ability to recover these costs in a timely manner;
the cost and availability of fuel such as coal, natural gas, and enriched uranium used to produce electricity; the cost and availability of purchased power and natural gas for distribution; and the level and volatility of future market prices for such commodities, including our ability to recover the costs for such commodities and our customers' tolerance for the related rate increases;
the effectiveness of our risk management strategies and our use of financial and derivative instruments;
business and economic conditions, including their impact on key customers, interest rates, collection of our receivable balances, and demand for our products;
disruptions of the capital markets, deterioration in credit metrics of the Ameren Companies, or other events that may have an adverse effect on the cost or availability of capital, including short-term credit and liquidity;
the impact of the adoption of new accounting guidance and the application of appropriate technical accounting rules and guidance;
actions of credit rating agencies and the effects of such actions;
the impact of weather conditions and other natural phenomena on us and our customers, including the impact of system outages;
the construction, installation, performance, and cost recovery of generation, transmission, and distribution assets;
the effects of our increasing investment in electric transmission projects and uncertainty as to whether we will achieve our expected returns in a timely fashion, if at all;
the extent to which Ameren Missouri prevails in its claim against an insurer in connection with the December 2005 breach of the upper reservoir at the Taum Sauk pumped-storage hydroelectric energy center;
the extent to which Ameren Missouri is permitted by its regulators to recover in rates the investments it made in


1



connection with additional nuclear generation at its Callaway energy center;
operation of Ameren Missouri's Callaway energy center, including planned and unplanned outages, and decommissioning costs;
the effects of strategic initiatives, including mergers, acquisitions and divestitures, and any related tax implications;
the resolution of tax positions for years under examination by the IRS;
the impact of current environmental regulations and new, more stringent, or changing requirements, including those related to greenhouse gases, other emissions and discharges, cooling water intake structures, CCR, and energy efficiency, that are enacted over time and that could limit or terminate the operation of certain of our energy centers, increase our costs or investment requirements, result in an impairment of our assets, cause us to sell our assets, reduce our customers' demand for electricity or natural gas, or otherwise have a negative financial effect;
the impact of complying with renewable energy portfolio requirements in Missouri;
labor disputes, work force reductions, future wage and employee benefits costs, including changes in discount rates, mortality tables, and returns on benefit plan assets;
the inability of our counterparties to meet their obligations with respect to contracts, credit agreements, and financial instruments;
the cost and availability of transmission capacity for the energy generated by Ameren Missouri's energy centers or required to satisfy Ameren Missouri's energy sales;
the inability of Dynegy and IPH to satisfy their indemnity and other obligations to Ameren in connection with the divestiture of New AER to IPH;
legal and administrative proceedings; and
acts of sabotage, war, terrorism, cyber attacks, or other intentionally disruptive acts.
Given these uncertainties, undue reliance should not be placed on these forward-looking statements. Except to the extent required by the federal securities laws, we undertake no obligation to update or revise publicly any forward-looking statements to reflect new information or future events.



2



PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
 
AMEREN CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Unaudited) (In millions, except per share amounts)
 
Three Months Ended March 31,
 
2015
 
2014
Operating Revenues:
 
 
 
Electric
$
1,143

 
$
1,106

Gas
413

 
488

Total operating revenues
1,556

 
1,594

Operating Expenses:
 
 
 
Fuel
206

 
204

Purchased power
139

 
114

Gas purchased for resale
236

 
304

Other operations and maintenance
401

 
418

Depreciation and amortization
193

 
181

Taxes other than income taxes
125

 
127

Total operating expenses
1,300

 
1,348

Operating Income
256

 
246

Other Income and Expense:
 
 
 
Miscellaneous income
19

 
18

Miscellaneous expense
11

 
9

Total other income
8

 
9

Interest Charges
88

 
92

Income Before Income Taxes
176

 
163

Income Taxes
66

 
64

Income from Continuing Operations
110

 
99

Loss from Discontinued Operations, Net of Taxes (Note 12)

 
(1
)
Net Income
110

 
98

Less: Net Income from Continuing Operations Attributable to Noncontrolling Interests
2

 
2

Net Income (Loss) Attributable to Ameren Corporation:
 
 
 
Continuing Operations
108

 
97

Discontinued Operations

 
(1
)
Net Income Attributable to Ameren Corporation
$
108

 
$
96

 
 
 
 
Earnings per Common Share – Basic:
 
 
 
Continuing Operations
$
0.45

 
$
0.40

Discontinued Operations

 

Earnings per Common Share – Basic
$
0.45

 
$
0.40

 
 
 
 
 
 
 
 
Dividends per Common Share
$
0.41

 
$
0.40

Average Common Shares Outstanding – Basic
242.6

 
242.6

The accompanying notes are an integral part of these consolidated financial statements.

3



AMEREN CORPORATION
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited) (In millions)
 
 
Three Months Ended March 31,
 
2015
 
2014
Income from Continuing Operations
$
110

 
$
99

Other Comprehensive Income from Continuing Operations, Net of Taxes

 

Comprehensive Income from Continuing Operations
110

 
99

Less: Comprehensive Income from Continuing Operations Attributable to Noncontrolling Interests
2

 
2

Comprehensive Income from Continuing Operations Attributable to Ameren Corporation
108

 
97

 
 
 
 
Loss from Discontinued Operations, Net of Taxes

 
(1
)
Other Comprehensive Loss from Discontinued Operations, Net of Taxes

 

Comprehensive Loss from Discontinued Operations Attributable to Ameren Corporation

 
(1
)
Comprehensive Income Attributable to Ameren Corporation
$
108

 
$
96

The accompanying notes are an integral part of these consolidated financial statements.

4



AMEREN CORPORATION
CONSOLIDATED BALANCE SHEET
(Unaudited) (In millions, except per share amounts)
 
March 31, 2015
 
December 31, 2014
ASSETS
 
 
 
Current Assets:
 
 
 
Cash and cash equivalents
$
6

 
$
5

Accounts receivable – trade (less allowance for doubtful accounts of $23 and $21, respectively)
524

 
423

Unbilled revenue
212

 
265

Miscellaneous accounts and notes receivable
100

 
81

Materials and supplies
449

 
524

Current regulatory assets
265

 
295

Current accumulated deferred income taxes, net
331

 
352

Other current assets
91

 
86

Assets of discontinued operations (Note 12)
15

 
15

Total current assets
1,993

 
2,046

Property and Plant, Net
17,700

 
17,424

Investments and Other Assets:
 
 
 
Nuclear decommissioning trust fund
558

 
549

Goodwill
411

 
411

Regulatory assets
1,577

 
1,582

Other assets
645

 
664

Total investments and other assets
3,191

 
3,206

TOTAL ASSETS
$
22,884

 
$
22,676

LIABILITIES AND EQUITY
 
 
 
Current Liabilities:
 
 
 
Current maturities of long-term debt
$
380

 
$
120

Short-term debt
955

 
714

Accounts and wages payable
434

 
711

Taxes accrued
79

 
46

Interest accrued
94

 
85

Current regulatory liabilities
107

 
106

Other current liabilities
437

 
434

Liabilities of discontinued operations (Note 12)
34

 
33

Total current liabilities
2,520

 
2,249

Long-term Debt, Net
5,860

 
6,120

Deferred Credits and Other Liabilities:
 
 
 
Accumulated deferred income taxes, net
3,964

 
3,923

Accumulated deferred investment tax credits
65

 
64

Regulatory liabilities
1,897

 
1,850

Asset retirement obligations
500

 
396

Pension and other postretirement benefits
708

 
705

Other deferred credits and liabilities
524

 
514

Total deferred credits and other liabilities
7,658

 
7,452

Commitments and Contingencies (Notes 2, 9, 10 and 12)


 


Ameren Corporation Stockholders’ Equity:
 
 
 
Common stock, $.01 par value, 400.0 shares authorized – shares outstanding of 242.6
2

 
2

Other paid-in capital, principally premium on common stock
5,600

 
5,617

Retained earnings
1,111

 
1,103

Accumulated other comprehensive loss
(9
)
 
(9
)
Total Ameren Corporation stockholders’ equity
6,704

 
6,713

Noncontrolling Interests
142

 
142

Total equity
6,846

 
6,855

TOTAL LIABILITIES AND EQUITY
$
22,884

 
$
22,676

The accompanying notes are an integral part of these consolidated financial statements.

5



AMEREN CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) (In millions)
 
Three Months Ended March 31,
 
2015
 
2014
Cash Flows From Operating Activities:
 
 
 
Net income
$
110

 
$
98

Loss from discontinued operations, net of taxes

 
1

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
195

 
176

Amortization of nuclear fuel
23

 
24

Amortization of debt issuance costs and premium/discounts
5

 
5

Deferred income taxes and investment tax credits, net
59

 
84

Allowance for equity funds used during construction
(5
)
 
(7
)
Stock-based compensation costs
8

 
9

Other
(11
)
 
(1
)
Changes in assets and liabilities:
 
 
 
Receivables
(48
)
 
(86
)
Materials and supplies
75

 
102

Accounts and wages payable
(215
)
 
(183
)
Taxes accrued
33

 
18

Regulatory assets and liabilities
62

 
(40
)
Assets, other
14

 
10

Liabilities, other
(33
)
 
(11
)
Pension and other postretirement benefits
27

 
30

Counterparty collateral, net
(2
)
 
10

Net cash provided by operating activities – continuing operations
297

 
239

Net cash provided by operating activities – discontinued operations
1

 

Net cash provided by operating activities
298

 
239

Cash Flows From Investing Activities:
 
 
 
Capital expenditures
(417
)
 
(442
)
Nuclear fuel expenditures
(17
)
 
(10
)
Purchases of securities – nuclear decommissioning trust fund
(84
)
 
(186
)
Sales and maturities of securities – nuclear decommissioning trust fund
79

 
182

Proceeds from note receivable – Marketing Company
5

 
56

Contributions to note receivable – Marketing Company
(5
)
 
(65
)
Net cash used in investing activities – continuing operations
(439
)
 
(465
)
Net cash provided by investing activities – discontinued operations

 
152

Net cash used in investing activities
(439
)
 
(313
)
Cash Flows From Financing Activities:
 
 
 
Dividends on common stock
(99
)
 
(97
)
Dividends paid to noncontrolling interest holders
(2
)
 
(2
)
Short-term debt, net
241

 
332

Redemptions of long-term debt

 
(163
)
Other
2

 

Net cash provided by financing activities – continuing operations
142

 
70

Net cash used in financing activities – discontinued operations

 

Net cash provided by financing activities
142

 
70

Net change in cash and cash equivalents
1

 
(4
)
Cash and cash equivalents at beginning of year
5

 
30

Cash and cash equivalents at end of period
$
6

 
$
26

The accompanying notes are an integral part of these consolidated financial statements.

6



 
UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
STATEMENT OF INCOME AND COMPREHENSIVE INCOME
(Unaudited) (In millions)
 
Three Months Ended March 31,
 
2015
 
2014
Operating Revenues:
 
 
 
Electric
$
742

 
$
749

Gas
58

 
68

Total operating revenues
800

 
817

Operating Expenses:
 
 
 
Fuel
206

 
204

Purchased power
39

 
35

Gas purchased for resale
31

 
40

Other operations and maintenance
211

 
225

Depreciation and amortization
118

 
116

Taxes other than income taxes
80

 
78

Total operating expenses
685

 
698

Operating Income
115

 
119

Other Income and Expense:
 
 
 
Miscellaneous income
11

 
14

Miscellaneous expense
3

 
4

Total other income
8

 
10

Interest Charges
55

 
52

Income Before Income Taxes
68

 
77

Income Taxes
26

 
29

Net Income
42

 
48

Other Comprehensive Income

 

Comprehensive Income
$
42

 
$
48

 
 
 
 
 
 
 
 
Net Income
$
42

 
$
48

Preferred Stock Dividends
1

 
1

Net Income Available to Common Stockholder
$
41

 
$
47

The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.

7



UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
BALANCE SHEET
(Unaudited) (In millions, except per share amounts)
 
March 31, 2015
 
December 31, 2014
ASSETS
 
 
 
Current Assets:
 
 
 
Cash and cash equivalents
$
1

 
$
1

Accounts receivable – trade (less allowance for doubtful accounts of $8 and $8, respectively)
202

 
190

Accounts receivable – affiliates
3

 
65

Unbilled revenue
120

 
146

Miscellaneous accounts and notes receivable
42

 
35

Materials and supplies
361

 
347

Current regulatory assets
158

 
163

Other current assets
77

 
92

Total current assets
964

 
1,039

Property and Plant, Net
10,959

 
10,867

Investments and Other Assets:
 
 
 
Nuclear decommissioning trust fund
558

 
549

Regulatory assets
687

 
695

Other assets
387

 
391

Total investments and other assets
1,632

 
1,635

TOTAL ASSETS
$
13,555

 
$
13,541

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current Liabilities:
 
 
 
Current maturities of long-term debt
$
380

 
$
120

Borrowings from money pool
61

 

Short-term debt
140

 
97

Accounts and wages payable
182

 
405

Accounts payable – affiliates
59

 
56

Taxes accrued
69

 
32

Interest accrued
51

 
58

Current regulatory liabilities
32

 
18

Other current liabilities
114

 
117

Total current liabilities
1,088

 
903

Long-term Debt, Net
3,619

 
3,879

Deferred Credits and Other Liabilities:
 
 
 
Accumulated deferred income taxes, net
2,821

 
2,806

Accumulated deferred investment tax credits
62

 
61

Regulatory liabilities
1,169

 
1,147

Asset retirement obligations
493

 
389

Pension and other postretirement benefits
277

 
274

Other deferred credits and liabilities
32

 
30

Total deferred credits and other liabilities
4,854

 
4,707

Commitments and Contingencies (Notes 2, 8, 9 and 10)


 


Stockholders’ Equity:
 
 
 
Common stock, $5 par value, 150.0 shares authorized – 102.1 shares outstanding
511

 
511

Other paid-in capital, principally premium on common stock
1,784

 
1,569

Preferred stock
80

 
80

Retained earnings
1,619

 
1,892

Total stockholders’ equity
3,994

 
4,052

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
13,555

 
$
13,541

The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.

8



UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
STATEMENT OF CASH FLOWS
(Unaudited) (In millions)
 
Three Months Ended March 31,
 
2015
 
2014
Cash Flows From Operating Activities:
 
 
 
Net income
$
42

 
$
48

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
121

 
112

Amortization of nuclear fuel
23

 
24

Amortization of debt issuance costs and premium/discounts
2

 
2

Deferred income taxes and investment tax credits, net
21

 
30

Allowance for equity funds used during construction
(4
)
 
(7
)
Changes in assets and liabilities:
 
 
 
Receivables
60

 
2

Materials and supplies
(14
)
 
14

Accounts and wages payable
(171
)
 
(153
)
Taxes accrued
40

 
30

Regulatory assets and liabilities
27

 
(28
)
Assets, other
3

 
5

Liabilities, other
(5
)
 
2

Pension and other postretirement benefits
12

 
15

Net cash provided by operating activities
157

 
96

Cash Flows From Investing Activities:
 
 
 
Capital expenditures
(145
)
 
(188
)
Nuclear fuel expenditures
(17
)
 
(10
)
Purchases of securities – nuclear decommissioning trust fund
(84
)
 
(186
)
Sales and maturities of securities – nuclear decommissioning trust fund
79

 
182

Other
(2
)
 
(2
)
Net cash used in investing activities
(169
)
 
(204
)
Cash Flows From Financing Activities:
 
 
 
Dividends on common stock
(315
)
 
(77
)
Dividends on preferred stock
(1
)
 
(1
)
Short-term debt, net
43

 
290

Money pool borrowings, net
61

 
(105
)
Capital contribution from parent
224

 

Net cash provided by financing activities
12

 
107

Net change in cash and cash equivalents

 
(1
)
Cash and cash equivalents at beginning of year
1

 
1

Cash and cash equivalents at end of period
$
1

 
$

The accompanying notes as they relate to Ameren Missouri are an integral part of these financial statements.


9



 
AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
STATEMENT OF INCOME AND COMPREHENSIVE INCOME
(Unaudited) (In millions)
 
Three Months Ended March 31,
 
2015
 
2014
Operating Revenues:
 
 
 
Electric
$
390

 
$
353

Gas
355

 
421

Total operating revenues
745

 
774

Operating Expenses:
 
 
 
Purchased power
102

 
81

Gas purchased for resale
205

 
264

Other operations and maintenance
202

 
200

Depreciation and amortization
73

 
63

Taxes other than income taxes
43

 
46

Total operating expenses
625

 
654

Operating Income
120

 
120

Other Income and Expense:
 
 
 
Miscellaneous income
7

 
3

Miscellaneous expense
5

 
4

Total other income (expense)
2

 
(1
)
Interest Charges
33

 
30

Income Before Income Taxes
89

 
89

Income Taxes
35

 
35

Net Income
54

 
54

Other Comprehensive Loss, Net of Taxes:
 
 
 
Pension and other postretirement benefit plan activity, net of income taxes (benefit) of $(1) and $(1), respectively
(1
)
 
(1
)
Comprehensive Income
$
53

 
$
53

 
 
 
 
 
 
 
 
Net Income
$
54

 
$
54

Preferred Stock Dividends
1

 
1

Net Income Available to Common Stockholder
$
53

 
$
53

The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.


10



AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
BALANCE SHEET
(Unaudited) (In millions)
 
March 31, 2015
 
December 31, 2014
ASSETS
 
 
 
Current Assets:
 
 
 
Cash and cash equivalents
$

 
$
1

Advances to money pool
33

 

Accounts receivable – trade (less allowance for doubtful accounts of $15 and $13, respectively)
304

 
212

Accounts receivable – affiliates
5

 
22

Unbilled revenue
92

 
119

Miscellaneous accounts receivable
12

 
9

Materials and supplies
88

 
177

Current regulatory assets
105

 
129

Current accumulated deferred income taxes, net
159

 
160

Other current assets
13

 
15

Total current assets
811

 
844

Property and Plant, Net
6,272

 
6,165

Investments and Other Assets:
 
 
 
Goodwill
411

 
411

Regulatory assets
883

 
883

Other assets
79

 
78

Total investments and other assets
1,373

 
1,372

TOTAL ASSETS
$
8,456

 
$
8,381

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current Liabilities:
 
 
 
Short-term debt
$

 
$
32

Borrowings from money pool

 
15

Accounts and wages payable
193

 
207

Accounts payable – affiliates
49

 
50

Taxes accrued
41

 
17

Interest accrued
43

 
24

Customer deposits
76

 
77

Mark-to-market derivative liabilities
43

 
42

Current environmental remediation
46

 
52

Current regulatory liabilities
69

 
84

Other current liabilities
100

 
100

Total current liabilities
660

 
700

Long-term Debt, Net
2,241

 
2,241

Deferred Credits and Other Liabilities:
 
 
 
Accumulated deferred income taxes, net
1,421

 
1,408

Regulatory liabilities
727

 
703

Pension and other postretirement benefits
278

 
277

Environmental remediation
200

 
199

Other deferred credits and liabilities
216

 
192

Total deferred credits and other liabilities
2,842

 
2,779

Commitments and Contingencies (Notes 2, 8 and 9)


 


Stockholders’ Equity:
 
 
 
Common stock, no par value, 45.0 shares authorized – 25.5 shares outstanding

 

Other paid-in capital
1,980

 
1,980

Preferred stock
62

 
62

Retained earnings
664

 
611

Accumulated other comprehensive income
7

 
8

Total stockholders’ equity
2,713

 
2,661

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
8,456

 
$
8,381


The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.

11



AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
STATEMENT OF CASH FLOWS
(Unaudited) (In millions)
 
Three Months Ended March 31,
 
2015
 
2014
Cash Flows From Operating Activities:
 
 
 
Net income
$
54

 
$
54

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
72

 
62

Amortization of debt issuance costs and premium/discounts
4

 
3

Deferred income taxes and investment tax credits, net
13

 
36

Other
(3
)
 
(2
)
Changes in assets and liabilities:
 
 
 
Receivables
(41
)
 
(94
)
Materials and supplies
89

 
88

Accounts and wages payable
(11
)
 
14

Taxes accrued
24

 
(1
)
Regulatory assets and liabilities
33

 
(11
)
Assets, other
6

 
5

Liabilities, other
4

 
16

Pension and other postretirement benefits
11

 
10

Counterparty collateral, net
(1
)
 
12

Net cash provided by operating activities
254

 
192

Cash Flows From Investing Activities:
 
 
 
Capital expenditures
(174
)
 
(215
)
Money pool advances, net
(33
)
 

Other

 
1

Net cash used in investing activities
(207
)
 
(214
)
Cash Flows From Financing Activities:
 
 
 
Dividends on preferred stock
(1
)
 
(1
)
Short-term debt, net
(32
)
 

Money pool borrowings, net
(15
)
 
186

Redemptions of long-term debt

 
(163
)
Net cash provided by (used in) financing activities
(48
)
 
22

Net change in cash and cash equivalents
(1
)
 

Cash and cash equivalents at beginning of year
1

 
1

Cash and cash equivalents at end of period
$

 
$
1

The accompanying notes as they relate to Ameren Illinois are an integral part of these financial statements.


12



AMEREN CORPORATION (Consolidated)
UNION ELECTRIC COMPANY (d/b/a Ameren Missouri)
AMEREN ILLINOIS COMPANY (d/b/a Ameren Illinois)
COMBINED NOTES TO FINANCIAL STATEMENTS
(Unaudited)
March 31, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General
Ameren, headquartered in St. Louis, Missouri, is a public utility holding company under PUHCA 2005, administered by the FERC. Ameren’s primary assets are its equity interests in its subsidiaries, including Ameren Missouri and Ameren Illinois. Ameren’s subsidiaries are separate, independent legal entities with separate businesses, assets, and liabilities. Dividends on Ameren’s common stock and the payment of expenses by Ameren depend on distributions made to it by its subsidiaries. Ameren’s principal subsidiaries are listed below. Also see the Glossary of Terms and Abbreviations at the front of this report and in the Form 10-K.
Union Electric Company, doing business as Ameren Missouri, operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas transmission and distribution business in Missouri.
Ameren Illinois Company, doing business as Ameren Illinois, operates rate-regulated electric and natural gas transmission and distribution businesses in Illinois.
Ameren has various other subsidiaries that conduct activities such as the provision of shared services. Ameren also has a subsidiary, ATXI, that operates a FERC rate-regulated electric transmission business. ATXI is developing MISO-approved electric transmission projects, including the Illinois Rivers, Spoon River, and Mark Twain projects. Ameren is also pursuing reliability projects within Ameren Missouri's and Ameren Illinois' service territories as well as competitive electric transmission investment opportunities outside of these territories, including investments outside of MISO.
The operating results, assets, and liabilities of the Elgin, Gibson City, Grand Tower, Meredosia, and Hutsonville energy centers have been presented separately as discontinued operations for all periods presented in this report. Unless otherwise stated, these notes to Ameren’s financial statements exclude discontinued operations for all periods presented. See Note 12 - Divestiture Transactions and Discontinued Operations in this report for additional information regarding the discontinued operations presentation and Note 16 - Divestiture Transactions and Discontinued Operations under Part II, Item 8, of the Form 10-K for additional information regarding Ameren’s divestiture of New AER in December 2013.
 
The financial statements of Ameren are prepared on a consolidated basis, and therefore include the accounts of its majority-owned subsidiaries. All intercompany transactions have been eliminated. Ameren Missouri and Ameren Illinois have no subsidiaries, and therefore their financial statements are not prepared on a consolidated basis. All tabular dollar amounts are in millions, unless otherwise indicated.
Our accounting policies conform to GAAP. Our financial statements reflect all adjustments (which include normal, recurring adjustments) that are necessary, in our opinion, for a fair presentation of our results. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. Such estimates and assumptions affect reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of financial statements, and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. The results of operations of an interim period may not give a true indication of results that may be expected for a full year. These financial statements should be read in conjunction with the financial statements and the notes thereto included in the Form 10-K.
Asset Retirement Obligations
The following table provides a reconciliation of the beginning and ending carrying amount of AROs for the three months ended March 31, 2015:
 
Ameren
Missouri
 
Ameren
Illinois(a)
 
Ameren
 
Balance at December 31, 2014
$
389

 
$
7

 
$
396

 
Accretion in 2015(b)
5

 
(c)

 
5

 
Change in estimates(d)
99

 
(c)

 
99

 
Balance at March 31, 2015
$
493

 
$
7

 
$
500

 
(a)
Included in “Other deferred credits and liabilities” on the balance sheet.
(b)
Accretion expense was recorded as an increase to regulatory assets at Ameren Missouri and Ameren Illinois.
(c)
Less than $1 million.
(d)
The ARO increase also resulted in a corresponding increase recorded to “Property and Plant, Net.” Ameren Missouri’s estimates related to its Callaway energy center decommissioning costs changed to reflect increased costs from the 2015 cost study and funding analysis, extension of the estimated operating life until 2044, and a reduction in the discount rate assumption. See Note 10 - Callaway Energy Center for additional information.
In addition, during the second quarter of 2015, Ameren and Ameren Missouri each expect to record an increase to their ARO related to retirement costs for CCR storage facilities of between $90 million and $120 million, with a corresponding increase to “Property and Plant, Net.” This increase is a result of the EPA’s new regulations for the management and disposal of CCR, which were published in April 2015. See Note 9 - Commitments and Contingencies in this report for additional information.


13



Stock-based Compensation
A summary of nonvested performance share units at March 31, 2015, and changes during the three months ended March 31, 2015, under the 2006 Incentive Plan and the 2014 Incentive Plan are presented below:
 
Number of Performance Share Units
Weighted-average Fair Value Per Performance Share Unit
Nonvested at January 1, 2015
1,162,377

$
35.35

Granted(a)
566,332

52.88

Forfeitures
(1,944
)
34.75

Vested(b)
(68,411
)
47.88

Nonvested at March 31, 2015
1,658,354

$
40.82

(a)
Performance share units granted to certain executive and nonexecutive officers and other eligible employees in 2015 under the 2014 Incentive Plan.
(b)
Performance share units vested due to the attainment of retirement eligibility by certain employees. Actual shares issued for retirement-eligible employees will vary depending on actual performance over the three-year measurement period.
The fair value of each performance share unit awarded in 2015 under the 2014 Incentive Plan was determined to be $52.88, which was based on Ameren’s closing common share price of $46.13 at December 31, 2014, and lattice simulations. Lattice simulations are used to estimate expected share payout based on Ameren’s total stockholder return for a three-year performance period relative to the designated peer group beginning January 1, 2015. The simulations can produce a greater fair value for the performance share unit than the applicable closing common share price because they include the weighted payout scenarios in which an increase in the share price has occurred. The significant assumptions used to calculate fair value also included a three-year risk-free rate of 1.10%, volatility of 12% to 18% for the peer group, and Ameren’s attainment of a three-year average earnings per share threshold during the performance period.
Excise Taxes
Ameren Missouri and Ameren Illinois collect certain excise taxes from customers that are levied on the sale or distribution of natural gas and electricity. Excise taxes are levied on Ameren Missouri’s electric and natural gas businesses and on Ameren Illinois’ natural gas business and are recorded gross in “Operating Revenues - Electric,” “Operating Revenues - Gas” and “Operating Expenses - Taxes other than income taxes” on the statement of income or the statement of income and comprehensive income. Excise taxes for electric service in Illinois are levied on the customer and are therefore not included in Ameren Illinois’ revenues and expenses. The following table presents excise taxes recorded in “Operating Revenues - Electric,” “Operating Revenues - Gas” and “Operating Expenses - Taxes other than income taxes” for the three months ended March 31, 2015 and 2014:
 
Three Months
 
2015
 
2014
Ameren Missouri
$
34

 
$
34

Ameren Illinois
23

 
26

Ameren
$
57

 
$
60

 
Uncertain Tax Positions
The following table presents the total amount of reserves for unrecognized tax benefits (detriments) related to uncertain tax positions as of March 31, 2015, and December 31, 2014:
 
March 31, 2015
 
December 31, 2014
Ameren
$
53

 
$
54

Ameren Missouri
(1
)
 

Ameren Illinois
(1
)
 
(1
)
The following table presents the amount of reserves for unrecognized tax benefits, included in the table above, related to uncertain tax positions that, if recognized, would impact results of operations as of March 31, 2015, and December 31, 2014:
 
March 31, 2015
 
December 31, 2014
Ameren
$
52

 
$
52

Ameren Missouri
(1
)
 

Ameren Illinois
(1
)
 
(1
)
In March 2015, a settlement was reached with the IRS for tax year 2012. Since there were no uncertain tax positions related to the 2012 tax year as of December 31, 2014, this settlement did not impact the amount of recorded unrecognized tax benefits.
Ameren’s federal income tax return for the tax year 2013 is currently under examination by the IRS. It is reasonably possible that a settlement will be reached with the IRS in the next 12 months, which will result in a reduction of Ameren’s unrecognized tax benefits of $53 million related to discontinued operations.
In addition, it is reasonably possible that other events will occur during the next 12 months that would cause the total amount of our unrecognized tax benefits to fluctuate. However, other than as described above, we do not believe any such fluctuations would be material to our results of operations, financial position, or liquidity.
State income tax returns are generally subject to examination for a period of three years after filing. We do not


14



currently have material state income tax issues under examination, administrative appeal, or litigation. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states.
Earnings Per Share
There were no material differences between Ameren’s basic and diluted earnings per share amounts for the three months ended March 31, 2015 and 2014. The assumed settlement of dilutive performance share units had an immaterial impact on earnings per share.
Accounting and Reporting Developments
Below is a summary of recently adopted or issued authoritative accounting guidance relevant to the Ameren Companies.
Presentation of Debt Issuance Costs
In April 2015, FASB issued authoritative accounting guidance to simplify the presentation of debt issuance costs. The guidance requires debt issuance costs to be presented in the balance sheet as a reduction to the associated debt liability. Currently, debt issuance costs are presented as a component of “Other assets” on the Ameren Companies’ balance sheets. The guidance will be effective for the Ameren Companies in the first quarter of 2016 and applied retrospectively. The guidance will not affect the Ameren Companies' results of operations, financial position, or liquidity, as this guidance is presentation-related only.
NOTE 2 - RATE AND REGULATORY MATTERS
Below is a summary of updates to significant regulatory proceedings and related lawsuits. See also Note 2 - Rate and Regulatory Matters under Part II, Item 8, of the Form 10-K. We are unable to predict the ultimate outcome of these matters, the timing of the final decisions of the various agencies and courts, or the impact on our results of operations, financial position, or liquidity.
Missouri
2015 Electric Rate Order
In April 2015, the MoPSC issued an order approving an increase in Ameren Missouri’s annual revenues for electric service of $122 million, including $109 million related to the increase in net energy costs above the net energy costs included in base rates previously authorized by the MoPSC. The remaining increase of $13 million approved by the order was for non-energy costs. The revenue increase was based on a 9.53% return on common equity, a capital structure composed of 51.8% common equity, and a rate base of $7.0 billion to reflect investments through December 31, 2014. Rate changes consistent with the order will become effective on May 30, 2015.
The order approved Ameren Missouri’s request for continued use of the FAC; however, it changed the FAC to
 
exclude substantially all transmission charges and revenues. In addition, the order did not approve the continued use of the regulatory tracking mechanisms for storm costs and vegetation management and infrastructure inspection costs. The order did approve the continued use of the regulatory tracking mechanisms for pension and postretirement benefits, renewable energy standard cost, solar rebates, and uncertain tax positions that the MoPSC authorized in earlier electric rate orders.
In addition, the order approved a reduction to Noranda’s electric rates with an offsetting increase in electric rates for Ameren Missouri’s other customers. The rate shift will be revenue neutral to Ameren Missouri. Ameren Missouri supplies electricity to Noranda’s aluminum smelter in southeast Missouri under a 15-year agreement, which is subject to termination as early as May 31, 2020, and on each May 31 thereafter, upon at least five years notice by either party. Termination of the agreement by Ameren Missouri would require MoPSC approval.
Ameren Missouri will request a rehearing on several aspects of the MoPSC’s order, including the allowed return on common equity and the elimination of recovery of changes in transmission charges and revenues through the FAC. The MoOPC and the intervenor parties in this case may similarly seek rehearing or subsequently appeal any aspect of the order. Ameren Missouri cannot predict whether any such application for rehearing or appeal will be filed, or the outcome if so filed.
Accounting Authority Order
In November 2013, the MoPSC issued an accounting authority order that allowed Ameren Missouri to seek recovery of fixed costs totaling $36 million that were not previously recovered from Noranda as a result of the loss of load caused by a severe 2009 ice storm in a future electric rate case. In its April 2015 electric rate order, the MoPSC did not approve recovery of these fixed costs. Ameren Missouri had not recorded any revenue associated with this accounting authority order and will not record a charge to earnings based on the outcome of the MoPSC’s April 2015 electric rate order.
MEEIA Filing
In December 2014, Ameren Missouri filed an energy efficiency plan with the MoPSC under the MEEIA. This filing proposed a three-year plan that includes a portfolio of customer energy efficiency programs along with a cost recovery mechanism. If the plan is approved, beginning in January 2016, Ameren Missouri intends to invest $135 million over three years in the proposed customer energy efficiency programs. Ameren Missouri requested continued use of a MEEIA rider, which allows it to collect from or refund to customers any difference in the actual amounts incurred and the amounts collected from customers for the MEEIA program costs and net shared benefits. In addition, Ameren Missouri requested incentives to earn additional revenues by achieving certain customer energy efficiency goals, including $25 million if 100% of its customer energy efficiency goals are achieved during the three-year period. Ameren Missouri must achieve at least 70% of its


15



customer energy efficiency goals before it earns any incentive award.
Illinois
IEIMA
Under the provisions of the IEIMA, Ameren Illinois’ electric delivery service rates are subject to an annual revenue requirement reconciliation to its actual costs.Throughout each year, Ameren Illinois records a regulatory asset or a regulatory liability and a corresponding increase or decrease to operating revenues for any differences between the revenue requirement reflected in customer rates for that year and its estimate of the probable increase or decrease in the revenue requirement expected to ultimately be approved by the ICC based on that year's actual costs incurred. As of March 31, 2015, Ameren Illinois had recorded regulatory assets of $8 million, $101 million, and $52 million, to reflect its expected 2015, 2014 and 2013 revenue requirement reconciliation adjustments, with interest, respectively. Ameren Illinois is collecting the 2013 revenue requirement reconciliation adjustment from customers during 2015.
In April 2015, Ameren Illinois filed with the ICC its annual electric delivery service formula rate update to establish the revenue requirement used for 2016 rates. Pending ICC approval, Ameren Illinois’ update filing will result in a $110 million increase in Ameren Illinois’ electric delivery service revenue requirement, beginning in January 2016. This update reflects an increase to the annual formula rate based on 2014 actual costs and expected net plant additions for 2015, an increase to include the 2014 revenue requirement reconciliation adjustment, and a decrease for the conclusion of the 2013 revenue requirement reconciliation adjustment, which will be fully collected from customers in 2015.
In April 2015, the IEIMA’s formula rate framework was extended until the end of 2019, with further extensions possible through 2022.
2015 Natural Gas Delivery Service Rate Case
In January 2015, Ameren Illinois filed a request with the ICC seeking approval to increase its annual revenues for natural gas delivery service by $53 million. The request was based on a 10.25% return on common equity, a capital structure composed of 50% common equity, and a rate base of $1.2 billion. In an attempt to reduce regulatory lag, Ameren Illinois used a 2016 future test year in this proceeding. Included in the request was a proposal to implement a decoupling rider mechanism for residential and small nonresidential customers. The decoupling rider would ensure that changes in natural gas sales volumes do not affect Ameren Illinois' annual natural gas revenues for these rate classes.
A decision by the ICC in this proceeding is required by December 2015, with new rates expected to be effective in January 2016. Ameren Illinois cannot predict the level of any delivery service rate changes the ICC may approve, whether the
 
ICC will approve the decoupling rider, or whether any rate changes that may eventually be approved will be sufficient to enable Ameren Illinois to recover its costs and to earn a reasonable return on investments when the rate changes go into effect.
2013 Natural Gas Delivery Service Rate Order
In December 2013, the ICC issued a rate order that approved an increase in Ameren Illinois’ revenues for natural gas delivery service based on a 9.1% return on common equity. The rate changes became effective January 1, 2014. In March 2014, Ameren Illinois filed with the Appellate Court of the Fourth District of Illinois an appeal of the allowed return on common equity included in the ICC's order. Ameren Illinois sought a 10.4% return on common equity in this rate case. A decision is expected in 2015.
2015 ICC Purchased Power Reconciliation
In January 2015, the ICC issued an order that approved Ameren Illinois' reconciliation of revenues collected under its purchased power rider mechanism and Ameren Illinois' related cumulative power usage cost. In the first quarter of 2015, based on the January 2015 order, both Ameren and Ameren Illinois recorded a $15 million increase to electric revenues for the recovery of this cumulative power usage cost from electric customers.
ATXI Transmission Project
In August 2014, ATXI made a filing with the ICC requesting a certificate of public convenience and necessity and project approval for the Spoon River project, a MISO-approved transmission line project located in northwest Illinois. A decision is expected from the ICC in 2015. A certificate of public convenience and necessity is required before ATXI can proceed with right-of-way acquisition.
Federal
Ameren Illinois Electric Transmission Rate Refund
In July 2012, the FERC issued an order concluding that Ameren Illinois improperly included acquisition premiums, including goodwill, in determining the common equity used in its electric transmission formula rate and thereby inappropriately recovered a higher amount from its electric transmission customers. The order required Ameren Illinois to make refunds to customers for such improperly included amounts.
Ameren Illinois submitted a refund report in November 2012, which concluded that no refund was warranted. Several wholesale customers filed a protest with the FERC regarding that conclusion. In June 2013, the FERC issued an order that rejected Ameren Illinois' November 2012 refund report and provided guidance as to the filing of a new refund report. In July 2013, Ameren Illinois filed a revised refund report based on the guidance provided in the June 2013 order, which also concluded that no refund was warranted. In June 2014, the FERC issued an


16



order establishing settlement procedures and, if necessary, hearing procedures regarding Ameren Illinois’ July 2013 refund report.
In March 2015, Ameren Illinois reached a settlement agreement with the wholesale customers that resolves the issues in this proceeding. The settlement agreement requires FERC approval. Upon approval by the FERC, the settlement agreement will require Ameren Illinois to make refunds and payments of $8 million to transmission customers. It will also require Ameren Illinois to take other actions, such as reducing common equity for electric transmission ratemaking purposes on a prospective basis. There is no date by which the FERC must act with respect to the settlement agreement. Ameren Illinois estimates the maximum refund obligation through March 31, 2015, to be $23 million. Ameren Illinois’ March 31, 2015 and December 31, 2014 balance sheets included an $8 million and a $7 million current liability, respectively, for its estimate of the probable refund to transmission customers. If Ameren Illinois were to determine that a refund to its electric transmission customers in excess of the amount already recorded is probable, an additional charge to earnings would be recorded in the period in which that determination was made.
FERC Complaint Cases
Currently, the FERC-allowed base return on common equity for MISO transmission owners is 12.38%. In November 2013, a customer group filed a complaint case with the FERC seeking a reduction in the allowed base return on common equity for the FERC-regulated MISO transmission rate base under the MISO tariff to 9.15%. The FERC scheduled the case for hearing proceedings, requiring an initial decision to be issued no later than November 30, 2015. As the maximum FERC-allowed refund period for the November 2013 complaint case ended in February 2015, another customer complaint case was filed in February 2015. The February 2015 complaint case seeks a reduction in the allowed base return on common equity for the FERC-regulated MISO transmission rate base under the MISO tariff to 8.67%.
In 2014, the FERC issued orders in a proceeding, in which the Ameren Companies were not involved, reducing the allowed base return on common equity for New England transmission owners from 11.14% to 10.57%, with rate incentives allowed up to 11.74%. The FERC order in the New England transmission owners’ case applied observable market data from October 2012 to March 2013 to determine the allowed base return on common equity. The evidence and the calculation used in the New England transmission owners’ case may guide the FERC’s decision in the MISO complaint cases discussed above. The FERC calculation will establish the allowed base return on common equity, which specifies a unique time period for each complaint case, and will require multiple inputs based on observable market data specific to the utility industry and broader macroeconomic data. In January 2015, the settlement judge for the initial MISO complaint case ordered that July 13, 2015, be the cut-off date for the observable market data to be used in the calculation of the allowed base return on common equity. Based
 
on the information in these orders, Ameren and Ameren Illinois recorded current liabilities on their respective balance sheets as of March 31, 2015, and December 31, 2014, representing their estimate of the refunds from the refund effective date of November 12, 2013, through the respective balance sheet date. A 50 basis point reduction in the FERC-allowed return on common equity would reduce Ameren's and Ameren Illinois' 2015 earnings by an estimated $4 million and $2 million, respectively, based on 2015 projected rate base. Ameren Missouri did not record a liability as of March 31, 2015, and does not expect that a reduction in the FERC-allowed base return on common equity for MISO transmission owners would be material to its results of operations, financial position, or liquidity.
Based on a November 2014 request, the FERC approved an incentive adder of up to 50 basis points on the allowed base return on common equity for our participation in an RTO. The incentive adder became effective on January 6, 2015. The FERC also approved our request to defer collection of the incentive adder until the issuance of the final order addressing the initial MISO complaint case.
Ameren Missouri Power Purchase Agreement with Entergy
Beginning in 2005, the FERC issued a series of orders addressing a complaint filed in 2001 by the Louisiana Public Service Commission against Entergy and certain of its affiliates. The complaint alleged unjust and unreasonable cost allocations. As a result of the FERC orders, Entergy began billing Ameren Missouri in 2007 for additional charges under a 165-megawatt power purchase agreement, which expired August 31, 2009. In May 2012, the FERC issued an order stating that Entergy should not have included additional charges to Ameren Missouri under the power purchase agreement. Pursuant to the order, in June 2012, Entergy paid Ameren Missouri $31 million. In November 2013, Entergy filed an appeal of the FERC's May 2012 order with the United States Court of Appeals for the District of Columbia Circuit. In March 2015, the United States Court of Appeals for the District of Columbia Circuit upheld the FERC’s May 2012 order. Ameren Missouri believes the outstanding issues relating to its power purchase agreement with Entergy have been resolved and will not result in a charge to earnings.
Combined Construction and Operating License
In 2008, Ameren Missouri filed an application with the NRC for a COL for a new nuclear unit at Ameren Missouri's existing Callaway County, Missouri, energy center site. In 2009, Ameren Missouri suspended its efforts to build a new nuclear unit at the Callaway site, and the NRC suspended review of the COL application. The suspended status of the COL application currently extends through the end of 2015.
Ameren Missouri estimates the total cost to obtain a COL for the Callaway site to be approximately $100 million. As of March 31, 2015, Ameren Missouri had capitalized investments of $69 million for the development of a new nuclear energy center. Ameren is currently evaluating all potential nuclear technologies in order to maintain an option for nuclear power in the future.


17



All of Ameren Missouri's capitalized investments for the development of a new nuclear energy center will remain capitalized while management pursues options to maximize the value of its investment. If efforts to license additional nuclear generation are abandoned, if the NRC does not extend the COL
 
application suspended status, or if management concludes it is probable that the costs incurred will be disallowed in rates, a charge to earnings would be recognized in the period in which that determination is made.

NOTE 3 - SHORT-TERM DEBT AND LIQUIDITY
The liquidity needs of the Ameren Companies are typically supported through the use of available cash, drawings under committed credit agreements, commercial paper issuances, or, in the case of Ameren Missouri and Ameren Illinois, short-term intercompany borrowings.
The 2012 Missouri Credit Agreement and the 2012 Illinois Credit Agreement, both of which expire on December 11, 2019, were not utilized for direct borrowings during the three months ended March 31, 2015, but were used to support commercial paper issuances and to issue letters of credit. Based on letters of credit issued under the 2012 Credit Agreements, as well as commercial paper outstanding, the aggregate amount of credit capacity available under the 2012 Credit Agreements to Ameren (parent), Ameren Missouri, and Ameren Illinois, collectively, at March 31, 2015, was $1.1 billion.
Commercial Paper
The following table presents commercial paper outstanding at Ameren (parent), Ameren Missouri, and Ameren Illinois as of March 31, 2015, and December 31, 2014.
  
March 31, 2015
 
December 31, 2014
Ameren (parent)
$
815

 
$
585

Ameren Missouri
140

 
97

Ameren Illinois

 
32

Ameren Consolidated
$
955

 
$
714

The following table summarizes the commercial paper activity and relevant interest rates under Ameren’s (parent), Ameren Missouri’s, and Ameren Illinois’ commercial paper programs for the three months ended March 31, 2015 and 2014. Ameren Illinois established a commercial paper program in May 2014.
 
 
Ameren
(parent)
Ameren
Missouri
Ameren
Illinois
Ameren Consolidated
2015
 
 
 
 
 
 
Average daily commercial paper outstanding
 
$
691

 
$
151

$
10

$
852

Weighted-average interest rate
 
0.55
%
 
0.49
%
0.44
%
0.53
%
Peak commercial paper during period(a)
 
$
815

 
$
243

$
39

$
955

Peak interest rate
 
0.70
%
 
0.60
%
0.60
%
0.70
%
2014
 
 
 
 
 
 
Average daily commercial paper outstanding
 
$
339

 
$
200

$

$
539

Weighted-average interest rate
 
0.45
%
 
0.45
%
%
0.45
%
Peak commercial paper during period(a)
 
$
452

 
$
290

$

$
700

Peak interest rate
 
0.75
%
 
0.70
%
%
0.75
%
(a)
The timing of peak commercial paper issuances varies by company, and therefore the peak amounts presented by company might not equal the Ameren Consolidated peak commercial paper issuances for the period.
Indebtedness Provisions and Other Covenants
The information below is a summary of the Ameren Companies’ compliance with indebtedness provisions and other covenants within the 2012 Credit Agreements. See Note 4 - Short-term Debt and Liquidity under Part II, Item 8, in the Form 10-K for a detailed description of these provisions.
The 2012 Credit Agreements contain nonfinancial covenants, including restrictions on the ability to incur liens, to transact with affiliates, to dispose of assets, to make investments in or transfer assets to its affiliates, and to merge with other entities. The 2012 Credit Agreements require each of Ameren,
 
Ameren Missouri, and Ameren Illinois to maintain consolidated indebtedness of not more than 65% of its consolidated total capitalization pursuant to a defined calculation set forth in the agreements. As of March 31, 2015, the ratios of consolidated indebtedness to total consolidated capitalization, calculated in accordance with the provisions of the 2012 Credit Agreements, were 51%, 50%, and 46%, for Ameren, Ameren Missouri, and Ameren Illinois, respectively. In addition, under the 2012 Illinois Credit Agreement and, by virtue of the cross-default provisions of the 2012 Missouri Credit Agreement, under the 2012 Missouri Credit Agreement, Ameren is required to maintain a ratio of consolidated funds from operations plus interest expense to consolidated interest expense of at least 2.0 to 1.0. However, the interest coverage requirement only applies at such times as


18



Ameren does not have a senior long-term unsecured credit rating of at least Baa3 from Moody’s or BBB- from S&P. As of March 31, 2015, Ameren exceeded the rating requirements; therefore, the interest coverage requirement was not applicable. Failure of a borrower to satisfy a financial covenant constitutes an immediate default under the applicable 2012 Credit Agreement.
The 2012 Credit Agreements contain default provisions that apply separately to each borrower; provided, however, that a default of Ameren Missouri or Ameren Illinois under the applicable 2012 Credit Agreement will also be deemed to constitute a default of Ameren under such agreement. Defaults include a cross-default of such borrower under any other agreement covering outstanding indebtedness of such borrower and certain subsidiaries (other than project finance subsidiaries and nonmaterial subsidiaries) in excess of $75 million in the aggregate (including under the other 2012 Credit Agreement). However, under the default provisions of the 2012 Credit Agreements, any default of Ameren under any 2012 Credit Agreement that results solely from a default of Ameren Missouri or Ameren Illinois thereunder does not result in a cross-default of Ameren under the other 2012 Credit Agreement. Further, the 2012 Credit Agreement default provisions provide that an Ameren default under any of the 2012 Credit Agreements does not constitute a default by Ameren Missouri or Ameren Illinois.
None of the Ameren Companies' credit agreements or financing arrangements contain credit rating triggers that would cause a default or acceleration of repayment of outstanding balances. The Ameren Companies were in compliance with the provisions and covenants of their credit agreements at March 31, 2015.
 
Money Pools
Ameren has money pool agreements with and among its subsidiaries to coordinate and provide for certain short-term cash and working capital requirements.
Ameren Missouri, Ameren Illinois, and Ameren Services may participate in the utility money pool as both lenders and borrowers. Ameren may participate in the utility money pool only as a lender. Surplus internal funds are contributed to the utility money pool from participants. The primary sources of external funds for the utility money pool are the 2012 Credit Agreements and the commercial paper programs. The total amount available to the pool participants from the utility money pool at any given time is reduced by the amount of borrowings made by participants, but is increased to the extent that the pool participants advance surplus funds to the utility money pool or remit funds from other external sources. The availability of funds is also determined by funding requirement limits established by regulatory authorizations. Participants receiving a loan under the utility money pool agreement must repay the principal amount of such loan, together with accrued interest. The rate of interest depends on the composition of internal and external funds in the utility money pool. The average interest rate for borrowing under the utility money pool for the three months ended March 31, 2015 and 2014, was 0.08% and 0.39%, respectively.
See Note 8 - Related Party Transactions for the amount of interest income and expense from the money pool arrangements recorded by the Ameren Companies for the three months ended March 31, 2015 and 2014.

NOTE 4 - LONG-TERM DEBT AND EQUITY
Ameren Missouri
In March 2015, Ameren Missouri received cash capital contributions of $224 million from Ameren (parent).
In April 2015, Ameren Missouri issued $250 million of 3.65% senior secured notes due April 15, 2045, with interest payable semiannually on April 15 and October 15 of each year, beginning October 15, 2015. Ameren Missouri received proceeds of $247 million, which were used to repay outstanding short-term debt, including short-term debt that Ameren Missouri incurred in connection with the repayment of $114 million of its 4.75% senior secured notes that matured on April 1, 2015.
Indenture Provisions and Other Covenants
Ameren Missouri’s and Ameren Illinois’ indentures, credit facilities, and articles of incorporation include covenants and provisions related to issuances of first mortgage bonds and preferred stock. Ameren Missouri and Ameren Illinois are required to meet certain ratios to issue additional first mortgage bonds and preferred stock. A failure to achieve these ratios would not result in a default under these covenants and provisions, but would restrict the companies’ ability to issue bonds or preferred stock. The following table summarizes the required and actual interest coverage ratios for interest charges and dividend coverage ratios and bonds and preferred stock issuable as of March 31, 2015, at an assumed annual interest rate of 5% and dividend rate of 6%.
 
 
Required Interest
Coverage Ratio(a)
 
Actual Interest
Coverage Ratio
 
Bonds Issuable(b)
 
Required Dividend
Coverage Ratio(c)
 
Actual Dividend
Coverage Ratio
 
Preferred Stock
Issuable
 
Ameren Missouri
 
≥2.0
 
4.6
$
3,386
 
≥2.5
 
113.4
$
2,530
 
Ameren Illinois
 
≥2.0
 
6.6
 
3,423
(d) 
≥1.5
 
2.8
 
203
(e) 
(a)
Coverage required on the annual interest charges on first mortgage bonds outstanding and to be issued. Coverage is not required in certain cases when additional first mortgage bonds are issued on the basis of retired bonds.

19



(b)
Amount of bonds issuable based either on required coverage ratios or unfunded property additions, whichever is more restrictive. The amounts shown also include bonds issuable based on retired bond capacity of $832 million and $204 million at Ameren Missouri and Ameren Illinois, respectively.
(c)
Coverage required on the annual dividend on preferred stock outstanding and to be issued, as required in the respective company’s articles of incorporation.
(d)
Amount of bonds issuable by Ameren Illinois based on unfunded property additions and retired bonds solely under the former IP mortgage indenture. The amount of bonds issuable by Ameren Illinois is also subject to the lien restrictions contained in the 2012 Illinois Credit Agreement.
(e)
Preferred stock issuable is restricted by the amount of preferred stock that is currently authorized by Ameren Illinois’ articles of incorporation.
Ameren Missouri and Ameren Illinois and certain other Ameren subsidiaries are subject to Section 305(a) of the Federal Power Act, which makes it unlawful for any officer or director of a public utility, as defined in the Federal Power Act, to participate in the making or paying of any dividend from any funds “properly included in capital account.” The FERC has consistently interpreted the provision to allow dividends to be paid as long as (1) the source of the dividends is clearly disclosed, (2) the dividends are not excessive, and (3) there is no self-dealing on the part of corporate officials. At a minimum, Ameren believes that dividends can be paid by its subsidiaries that are public utilities from retained earnings. In addition, under Illinois law, Ameren Illinois may not pay any dividend on its stock, unless, among other things, its earnings and earned surplus are sufficient to declare and pay a dividend after provision is made for reasonable and proper reserves, or unless Ameren Illinois has specific authorization from the ICC.
Ameren Illinois’ articles of incorporation require dividend payments on its common stock to be based on ratios of common
 
stock to total capitalization and other provisions related to certain operating expenses and accumulations of earned surplus. Ameren Illinois committed to the FERC to maintain a minimum of 30% equity in its capital structure. As of March 31, 2015, Ameren Illinois had 54% of equity in its capital structure.
In order for the Ameren Companies to issue securities in the future, we have to comply with all applicable requirements in effect at the time of any such issuances.
Off-Balance-Sheet Arrangements
At March 31, 2015, none of the Ameren Companies had any off-balance-sheet financing arrangements, other than operating leases entered into in the ordinary course of business. None of the Ameren Companies expect to engage in any significant off-balance-sheet financing arrangements in the near future. See Note 12 - Divestiture Transactions and Discontinued Operations for Ameren (parent) guarantees and letters of credit issued to support New AER based on the transaction agreement with IPH.


20



NOTE 5 - OTHER INCOME AND EXPENSES
The following table presents the components of “Other Income and Expenses” in the Ameren Companies’ statements of income for the three months ended March 31, 2015 and 2014:
 
Three Months
 
 
2015
 
2014
 
Ameren:(a)
 
 
 
 
Miscellaneous income:
 
 
 
 
Allowance for equity funds used during construction
$
5

 
$
7

 
Interest income on industrial development revenue bonds
7

 
7

 
Interest income
4

 
2

 
Other
3

 
2

 
Total miscellaneous income
$
19

 
$
18

 
Miscellaneous expense:
 
 
 
 
Donations
$
8

 
$
5

 
Other
3

 
4

 
Total miscellaneous expense
$
11

 
$
9

 
Ameren Missouri:
 
 
 
 
Miscellaneous income:
 
 
 
 
Allowance for equity funds used during construction
$
4

 
$
7

 
Interest income on industrial development revenue bonds
7

 
7

 
Total miscellaneous income
$
11

 
$
14

 
Miscellaneous expense:
 
 
 
 
Donations
$
2

 
$
2

 
Other
1

 
2

 
Total miscellaneous expense
$
3

 
$
4

 
Ameren Illinois:
 
 
 
 
Miscellaneous income:
 
 
 
 
Allowance for equity funds used during construction
$
1

 
$

 
Interest income
4

 
2

 
Other
2

 
1

 
Total miscellaneous income
$
7

 
$
3

 
Miscellaneous expense:
 
 
 
 
Donations
$
3

 
$
3

 
Other
2

 
1

 
Total miscellaneous expense
$
5

 
$
4

 
(a)
Includes amounts for Ameren registrant and nonregistrant subsidiaries and intercompany eliminations.

NOTE 6 - DERIVATIVE FINANCIAL INSTRUMENTS
We use derivatives to manage the risk of changes in market prices for natural gas, power, and uranium, as well as the risk of changes in rail transportation surcharges through fuel oil hedges. Such price fluctuations may cause the following:
an unrealized appreciation or depreciation of our contracted commitments to purchase or sell when purchase or sale prices under the commitments are compared with current commodity prices;
market values of natural gas and uranium inventories that differ from the cost of those commodities in inventory; and
actual cash outlays for the purchase of these commodities that differ from anticipated cash outlays.
 
The derivatives that we use to hedge these risks are governed by our risk management policies for forward contracts, futures, options, and swaps. Our net positions are continually assessed within our structured hedging programs to determine whether new or offsetting transactions are required. The goal of the hedging program is generally to mitigate financial risks while ensuring that sufficient volumes are available to meet our requirements. Contracts we enter into as part of our risk management program may be settled financially, settled by physical delivery, or net settled with the counterparty.


21



The following table presents open gross commodity contract volumes by commodity type for derivative assets and liabilities as of March 31, 2015, and December 31, 2014. As of March 31, 2015, these contracts ran through October 2017, October 2019, May 2032, and October 2016 for fuel oils, natural gas, power, and uranium, respectively.
  
Quantity (in millions, except as indicated)
 
2015
2014
Commodity
Ameren Missouri
Ameren Illinois
Ameren
Ameren Missouri
Ameren Illinois
Ameren
Fuel oils (in gallons)(a)
40

(b)

40

50

(b)

50

Natural gas (in mmbtu)
29

121

150

28

108

136

Power (in megawatthours)
1

10

11

1

11

12

Uranium (pounds in thousands)
349

(b)

349

332

(b)

332

(a)
Fuel oils consist of heating oil and ultra-low-sulfur diesel.
(b)
Not applicable.
Authoritative accounting guidance regarding derivative instruments requires that all contracts considered to be derivative instruments be recorded on the balance sheet at their fair values, unless the NPNS exception applies. See Note 7 - Fair Value Measurements for discussion of our methods of assessing the fair value of derivative instruments. Many of our physical contracts, such as our purchased power contracts, qualify for the NPNS exception to derivative accounting rules. The revenue or expense on NPNS contracts is recognized at the contract price upon physical delivery.
If we determine that a contract meets the definition of a derivative and is not eligible for the NPNS exception, we review the contract to determine if it qualifies for hedge accounting. We also consider whether gains or losses resulting from such derivatives qualify for regulatory deferral. Derivative contracts that qualify for regulatory deferral are recorded at fair value, with changes in fair value recorded as regulatory assets or regulatory
 
liabilities in the period in which the change occurs. We believe derivative losses and gains deferred as regulatory assets and regulatory liabilities are probable of recovery or refund through future rates charged to customers. Regulatory assets and regulatory liabilities are amortized to operating income as related losses and gains are reflected in rates charged to customers. Therefore, gains and losses on these derivatives have no effect on operating income. As of March 31, 2015, and December 31, 2014, all contracts that qualify for hedge accounting received regulatory deferral.
Authoritative accounting guidance permits companies to offset fair value amounts recognized for the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a liability) against fair value amounts recognized for derivative instruments that are executed with the same counterparty under a master netting arrangement. The Ameren Companies did not elect to adopt this guidance for any eligible commodity contracts.


22



The following table presents the carrying value and balance sheet location of all derivative commodity contracts, none of which were designated as hedging instruments, as of March 31, 2015, and December 31, 2014:
 
Balance Sheet Location
 
Ameren
Missouri
 
Ameren
Illinois
 
Ameren
2015
 
 
 
 
 
 
Fuel oils
Other current assets
 
$
1

 
$

 
$
1

Natural gas
Other current assets
 

 
1

 
1

Power
Other current assets
 
7

 

 
7

 
Total assets
 
$
8

 
$
1

 
$
9

Fuel oils
Other current liabilities
 
$
21

 
$

 
$
21

 
Other deferred credits and liabilities
 
7

 

 
7

Natural gas
MTM derivative liabilities
 
(a)

 
32

 
(a)

 
Other current liabilities
 
6

 

 
38

 
Other deferred credits and liabilities
 
8

 
18

 
26

Power
MTM derivative liabilities
 
(a)

 
11

 
(a)

 
Other current liabilities
 
1

 

 
12

 
Other deferred credits and liabilities
 

 
153

 
153

Uranium
Other current liabilities
 
1

 

 
1

 
Total liabilities
 
$
44

 
$
214

 
$
258

2014
 
 
 
 
 
 
Fuel oils
Other current assets
 
$
2

 
$

 
$
2

Natural gas
Other current assets
 
1

 
1

 
2

Power
Other current assets
 
15

 

 
15

 
Total assets
 
$
18

 
$
1

 
$
19

Fuel oils
Other current liabilities
 
$
22

 
$

 
$
22

 
Other deferred credits and liabilities
 
7

 

 
7

Natural gas
MTM derivative liabilities
 
(a)

 
31

 
(a)

 
Other current liabilities
 
6

 

 
37

 
Other deferred credits and liabilities
 
6

 
13

 
19

Power
MTM derivative liabilities
 
(a)

 
11

 
(a)

 
Other current liabilities
 
3

 

 
14

 
Other deferred credits and liabilities
 

 
131

 
131

Uranium
Other current liabilities
 
2

 

 
2

 
Total liabilities
 
$
46

 
$
186

 
$
232

(a)
Balance sheet line item not applicable to registrant.

The following table presents the cumulative amount of pretax net gains (losses) on all derivative instruments deferred in regulatory assets or regulatory liabilities as of March 31, 2015, and December 31, 2014:
 
Ameren
Missouri
 
Ameren
Illinois
 
Ameren
2015
 
 
 
 
 
Fuel oils derivative contracts(a)
$
(27
)
 
$

 
$
(27
)
Natural gas derivative contracts(b)
(14
)
 
(49
)
 
(63
)
Power derivative contracts(c)
6

 
(164
)
 
(158
)
Uranium derivative contracts(d)
(1
)
 

 
(1
)
2014
 
 
 
 
 
Fuel oils derivative contracts
$
(29
)
 
$

 
$
(29
)
Natural gas derivative contracts
(11
)
 
(43
)
 
(54
)
Power derivative contracts
12

 
(142
)
 
(130
)
Uranium derivative contracts
(2
)
 

 
(2
)
(a)
Represents net losses associated with fuel oils derivative contracts at Ameren Missouri. These contracts are a partial hedge of Ameren Missouri’s rail transportation surcharges for coal through December 2017. Current losses deferred as regulatory assets include $20 million at Ameren and Ameren Missouri.
(b)
Represents net losses associated with natural gas derivative contracts. These contracts are a partial hedge of natural gas requirements through October 2019 at Ameren and Ameren Missouri and through October 2018 at Ameren Illinois. Current gains deferred as regulatory liabilities include $1 million at Ameren and Ameren Illinois, respectively. Current losses deferred as regulatory assets include $38 million, $6 million, and $32 million at Ameren, Ameren Missouri, and Ameren Illinois, respectively.
(c)
Represents net gains (losses) associated with power derivative contracts. These contracts are a partial hedge of power price requirements through May 2032 at Ameren and Ameren Illinois and through December 2016 at Ameren Missouri. Current gains deferred as regulatory liabilities include $7 million at Ameren and Ameren Missouri. Current losses deferred as regulatory assets include $12 million, $1 million, and $11 million at Ameren, Ameren Missouri, and Ameren Illinois, respectively.
(d)
Represents net losses on uranium derivative contracts at Ameren Missouri. These contracts are a partial hedge of Ameren Missouri’s uranium requirements through December 2016. Current losses deferred as regulatory assets include $1 million at Ameren and Ameren Missouri.

23



Derivative instruments are subject to various credit-related losses in the event of nonperformance by counterparties to the transaction. Exchange-traded contracts are supported by the financial and credit quality of the clearing members of the respective exchanges and have nominal credit risk. In all other transactions, we are exposed to credit risk. Our credit risk management program involves establishing credit limits and collateral requirements for counterparties, using master netting arrangements, and reporting daily exposure to senior management.
We believe that entering into master netting arrangements mitigates the level of financial loss that could result from default by allowing net settlement of derivative assets and liabilities. We generally enter into the following master netting arrangements: (1) the International Swaps and Derivatives Association Agreement, a standardized financial natural gas and electric contract; (2) the Master Power Purchase and Sale Agreement, created by the Edison Electric Institute and the National Energy Marketers Association, a standardized contract for the purchase and sale of wholesale power; and (3) the North American Energy Standards Board Inc. Agreement, a standardized contract for the purchase and sale of natural gas. These master netting arrangements allow the counterparties to net settle sale and purchase transactions. Further, collateral requirements are calculated at the master netting arrangement level by counterparty.
The following table provides the recognized gross derivative balances and the net amounts of those derivatives subject to an enforceable master netting arrangement or similar agreement as of March 31, 2015, and December 31, 2014:
 
 
 
 
Gross Amounts Not Offset in the Balance Sheet
 
 
Commodity Contracts Eligible to be Offset
 
Gross Amounts Recognized in the Balance Sheet
 
Derivative Instruments
 
Cash Collateral Received/Posted(a)
 
Net
Amount
2015
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Ameren Missouri
 
$
8

 
$
4

 
$

 
$
4

Ameren Illinois
 
1

 

 

 
1

Ameren
 
$
9

 
$
4

 
$