0001002910-18-000140.txt : 20181102 0001002910-18-000140.hdr.sgml : 20181102 20181102172019 ACCESSION NUMBER: 0001002910-18-000140 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 90 CONFORMED PERIOD OF REPORT: 20180930 FILED AS OF DATE: 20181102 DATE AS OF CHANGE: 20181102 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMEREN CORP CENTRAL INDEX KEY: 0001002910 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 431723446 STATE OF INCORPORATION: MO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-14756 FILM NUMBER: 181158102 BUSINESS ADDRESS: STREET 1: 1901 CHOUTEAU AVE STREET 2: MC 1370 CITY: ST LOUIS STATE: MO ZIP: 63166-6149 BUSINESS PHONE: 314-621-3222 MAIL ADDRESS: STREET 1: 1901 CHOUTEAU AVE STREET 2: MC 1370 CITY: ST LOUIS STATE: MO ZIP: 63103 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNION ELECTRIC CO CENTRAL INDEX KEY: 0000100826 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 430559760 STATE OF INCORPORATION: MO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-02967 FILM NUMBER: 181158100 BUSINESS ADDRESS: STREET 1: 1901 CHOUTEAU AVENUE STREET 2: MC 1370 CITY: ST LOUIS STATE: MO ZIP: 63166 BUSINESS PHONE: 314-621-3222 MAIL ADDRESS: STREET 1: 1901 CHOUTEAU AVENUE STREET 2: MC 1370 CITY: ST LOUIS STATE: MO ZIP: 63166 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Ameren Illinois Co CENTRAL INDEX KEY: 0000018654 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 370211380 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-03672 FILM NUMBER: 181158101 BUSINESS ADDRESS: STREET 1: 6 EXECUTIVE DRIVE CITY: COLLINSVILLE STATE: IL ZIP: 62234 BUSINESS PHONE: 618-343-8150 MAIL ADDRESS: STREET 1: 6 EXECUTIVE DRIVE CITY: COLLINSVILLE STATE: IL ZIP: 62234 FORMER COMPANY: FORMER CONFORMED NAME: CENTRAL ILLINOIS PUBLIC SERVICE CO DATE OF NAME CHANGE: 19920703 10-Q 1 aee-2018q3.htm 10-Q Document
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 September 30, 2018
OR
 
¨
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from             to
amerenmissouri.jpg
amerenlogoa09.jpg
amerenillinois.jpg
                    
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 every Interactive Data File required to be submitted 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 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, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
 
  
Large Accelerated
Filer
  
Accelerated
Filer
  
Non-Accelerated
Filer
  
Smaller Reporting
Company
 
Emerging Growth
Company
Ameren Corporation
  
ý
  
¨
  
¨
  
¨
 
¨
Union Electric Company
  
¨
  
¨
  
ý
  
¨
 
¨
Ameren Illinois Company
  
¨
  
¨
  
ý
  
¨
 
¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Ameren Corporation
¨
Union Electric Company
¨
Ameren Illinois Company
¨
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 October 31, 2018, was as follows:
 
Ameren Corporation
 
Common stock, $0.01 par value per share  244,295,792
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.
 
 





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.
2017 IRP – Integrated Resource Plan, a 20-year nonbinding plan Ameren Missouri filed with the MoPSC in September 2017, that includes Ameren Missouri’s preferred approach for meeting customers’ projected long-term energy needs in a cost-effective manner while maintaining system reliability.
CCR Rule – Coal Combustion Residuals Rule, a rule promulgated by the EPA that established regulations for the disposal of CCR in landfills and surface impoundments.
Form 10-K – The combined Annual Report on Form 10-K for the year ended December 31, 2017, filed by the Ameren Companies with the SEC.
Missouri Senate Bill 564 – A Missouri law that resulted in certain changes to the regulation of Ameren Missouri’s electric service business. These changes include a reduction of customer rates to pass through the effect of the reduction in the federal statutory corporate income tax rate enacted under the TCJA and, at each electric utility's election, the use of PISA, among other things.
PISA – Plant-in-service accounting, an election under Missouri Senate Bill 564 that permits electric utilities to defer and recover 85% of the depreciation expense and a weighted-average cost of capital return on rate base on certain property, plant, and equipment placed in-service after the PISA election date. The rate base on which the return is calculated incorporates qualifying capital expenditures since the PISA election date as well as changes in total accumulated depreciation excluding retirements and plant-related deferred income taxes. Accumulated PISA deferrals earn carrying costs at the weighted-average cost of capital.
RESRAM – Renewable energy standard rate-adjustment mechanism, a cost recovery mechanism allowed under state law that, upon approval by the MoPSC, would enable Ameren Missouri to recover costs relating to compliance with Missouri's renewable energy standard, including recovery of investments in wind generation and other renewables, and earn a return on those investments not already provided for in customer rates or any other recovery mechanism by adjusting customer rates on an annual basis without a traditional regulatory rate review. RESRAM regulatory assets will earn carrying costs at short-term interest rates.
 
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 the effects of the TCJA, and any changes in regulatory policies and ratemaking determinations, such as those that may result from the complaint case filed in February 2015 with the FERC seeking a reduction in the allowed base return on common equity under the MISO tariff, Ameren Missouri’s proposed RESRAM filed with the MoPSC in May 2018, Ameren Missouri’s requested certificate of convenience and necessity for a wind generation facility filed with the MoPSC in October 2018, Ameren Missouri’s proposed customer energy-efficiency plan under the MEEIA filed with the MoPSC in June 2018 and revised in October 2018, and future regulatory, judicial, or legislative actions that change regulatory recovery mechanisms;
the effect of Ameren Illinois’ participation in performance-based formula ratemaking frameworks under the IEIMA and the FEJA, including the direct relationship between Ameren Illinois' return on common equity and 30-year United States Treasury bond yields, and the related financial commitments;
the effect of the implementation of Missouri Senate Bill 564 on Ameren Missouri, including Ameren Missouri’s election to use PISA and the resulting customer rates caps;
the effects of changes in federal, state, or local laws and other governmental actions, including monetary, fiscal, and energy policies;
the effects of changes in federal, state, or local tax laws, regulations, interpretations, or rates, amendments or technical corrections to the TCJA, and any challenges to the tax positions taken by the Ameren Companies;
the effects on demand for our services resulting from technological advances, including advances in customer energy efficiency and private generation sources, which generate electricity at the site of consumption and are becoming more cost-competitive;
the effectiveness of Ameren Missouri’s customer energy-efficiency programs and the related revenues and performance incentives earned under its MEEIA programs, including Ameren Missouri’s proposed customer energy-efficiency plan filed with the MoPSC in June 2018 and revised in October 2018;

1



Ameren Illinois’ ability to achieve the FEJA electric customer energy-efficiency goals and the resulting impact on its allowed return on program investments;
our ability to align overall spending, both operating and capital, with frameworks established by our regulators and to recover these costs in a timely manner in our attempt to earn our allowed returns on equity;
the cost and availability of fuel, such as ultra-low-sulfur coal, natural gas, and enriched uranium used to produce electricity; the cost and availability of purchased power, zero emission credits, renewable energy credits, and natural gas for distribution; and the level and volatility of future market prices for such commodities and credits, including our ability to recover the costs for such commodities and credits and our customers’ tolerance for any related price increases;
disruptions in the delivery of fuel, failure of our fuel suppliers to provide adequate quantities or quality of fuel, or lack of adequate inventories of fuel, including nuclear fuel assemblies from one NRC-licensed supplier of Callaway energy center’s assemblies;
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 effectiveness of our risk management strategies and our use of financial and derivative instruments;
the ability to obtain sufficient insurance, including insurance for Ameren Missouri’s Callaway energy center, or, in the absence of insurance, the ability to recover uninsured losses from our customers;
business and economic conditions, including their impact on 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, including as a result of the implementation of the TCJA, or other events that may have an adverse effect on the cost or availability of capital, including short-term credit and liquidity;
the actions of credit rating agencies and the effects of such actions;
the inability of our counterparties to meet their obligations with respect to contracts, credit agreements, and financial instruments;
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 breakdowns or failures of equipment in the operation of natural gas transmission and distribution systems and storage facilities, such as leaks, explosions, and mechanical problems, and compliance with natural gas safety regulations;
operation of Ameren Missouri’s Callaway energy center, including planned and unplanned outages, and decommissioning costs;
the impact of current environmental regulations and new, more stringent, or changing requirements, including those related to CO2 and the proposed repeal and replacement of the Clean Power Plan and potential adoption and implementation of the Affordable Clean Energy Rule, other emissions and discharges, cooling water intake structures, CCR, and energy efficiency, that could limit or terminate the operation of certain of Ameren Missouri’s 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 and Illinois and with the zero emission standard in Illinois;
Ameren Missouri’s ability to acquire wind and other renewable generation facilities and recover its cost of investment and related return in a timely manner, which is affected by the ability to obtain all necessary project approvals; the availability of federal production and investment tax credits related to renewable energy and Ameren Missouri’s ability to use such credits; the cost of wind generation technologies; Ameren Missouri’s ability to obtain timely interconnection agreements with MISO or other RTOs, including the costs of such interconnections; and the implementation of a RESRAM;
labor disputes, work force reductions, future wage and employee benefits costs, including changes in discount rates, mortality tables, returns on benefit plan assets, and other assumptions;
the impact of negative opinions of us or our utility services that our customers, legislators, or regulators may have or develop, which could result from a variety of factors, including failures in system reliability, failure to implement our investment plans or to protect sensitive customer information, increases in rates, or negative media coverage;
the impact of adopting new accounting guidance;
the effects of strategic initiatives, including mergers, acquisitions, and divestitures;
legal and administrative proceedings;
the impact of cyberattacks, which could, among other things, result in the loss of operational control of energy centers and electric and natural gas transmission and distribution systems and/or the loss of data, such as customer, employee, financial, and operating system information; and
acts of sabotage, war, terrorism, or other intentionally disruptive acts.
New factors emerge from time to time, and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement. 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 AND COMPREHENSIVE INCOME
(Unaudited) (In millions, except per share amounts)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Operating Revenues:
 
 
 
 
 
 
 
Electric
$
1,590

 
$
1,594

 
$
4,209

 
$
4,183

Natural gas
134

 
129

 
663

 
592

Total operating revenues
1,724

 
1,723

 
4,872

 
4,775

Operating Expenses:
 
 
 
 
 
 
 
Fuel
216

 
199

 
590

 
594

Purchased power
148

 
163

 
453

 
493

Natural gas purchased for resale
30

 
25

 
252

 
196

Other operations and maintenance
429

 
413

 
1,299

 
1,262

Depreciation and amortization
241

 
225

 
713

 
668

Taxes other than income taxes
127

 
129

 
374

 
364

Total operating expenses
1,191

 
1,154

 
3,681

 
3,577

Operating Income
533

 
569

 
1,191

 
1,198

Other Income, Net
32

 
23

 
84

 
61

Interest Charges
101

 
97

 
302

 
295

Income Before Income Taxes
464

 
495

 
973

 
964

Income Taxes
105

 
205

 
221

 
376

Net Income
359

 
290

 
752

 
588

Less: Net Income Attributable to Noncontrolling Interests
2

 
2

 
5

 
5

Net Income Attributable to Ameren Common Shareholders
$
357

 
$
288

 
$
747

 
$
583

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
359

 
$
290

 
$
752

 
$
588

Other Comprehensive Income, Net of Taxes
 
 
 
 
 
 
 
Pension and other postretirement benefit plan activity, net of income taxes of $-, $-, $-, and $1, respectively
2

 

 
1

 
2

Comprehensive Income
361

 
290

 
753

 
590

Less: Comprehensive Income Attributable to Noncontrolling Interests
2

 
2

 
5

 
5

Comprehensive Income Attributable to Ameren Common Shareholders
$
359

 
$
288

 
$
748

 
$
585

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per Common Share – Basic
$
1.46

 
$
1.19

 
$
3.06

 
$
2.40

 
 
 
 
 
 
 
 
Earnings per Common Share – Diluted
$
1.45

 
$
1.18

 
$
3.04

 
$
2.39

 
 
 
 
 
 
 
 
Dividends per Common Share
$
0.4575

 
$
0.4400

 
$
1.3725

 
$
1.3200

Weighted-average Common Shares Outstanding – Basic
244.1

 
242.6

 
243.6

 
242.6

Weighted-average Common Shares Outstanding – Diluted
246.3

 
244.7

 
245.5

 
244.0

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

3



AMEREN CORPORATION
CONSOLIDATED BALANCE SHEET
(Unaudited) (In millions, except per share amounts)
 
September 30, 2018
 
December 31, 2017
ASSETS
 
 
 
Current Assets:
 
 
 
Cash and cash equivalents
$
11

 
$
10

Accounts receivable – trade (less allowance for doubtful accounts of $22 and $19, respectively)
605

 
445

Unbilled revenue
260

 
323

Miscellaneous accounts receivable
84

 
70

Inventories
525

 
522

Current regulatory assets
72

 
144

Other current assets
83

 
98

Total current assets
1,640

 
1,612

Property, Plant, and Equipment, Net
22,379

 
21,466

Investments and Other Assets:
 
 
 
Nuclear decommissioning trust fund
752

 
704

Goodwill
411

 
411

Regulatory assets
1,130

 
1,230

Other assets
647

 
522

Total investments and other assets
2,940

 
2,867

TOTAL ASSETS
$
26,959

 
$
25,945

LIABILITIES AND EQUITY
 
 
 
Current Liabilities:
 
 
 
Current maturities of long-term debt
$
649

 
$
841

Short-term debt
521

 
484

Accounts and wages payable
591

 
902

Taxes accrued
154

 
52

Interest accrued
108

 
99

Customer deposits
126

 
108

Current regulatory liabilities
114

 
128

Other current liabilities
317

 
326

Total current liabilities
2,580

 
2,940

Long-term Debt, Net
7,614

 
7,094

Deferred Credits and Other Liabilities:
 
 
 
Accumulated deferred income taxes, net
2,692

 
2,506

Accumulated deferred investment tax credits
45

 
49

Regulatory liabilities
4,652

 
4,387

Asset retirement obligations
640

 
638

Pension and other postretirement benefits
529

 
545

Other deferred credits and liabilities
409

 
460

Total deferred credits and other liabilities
8,967

 
8,585

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


 


Ameren Corporation Shareholders’ Equity:
 
 
 
Common stock, $.01 par value, 400.0 shares authorized – shares outstanding of 244.2 and 242.6, respectively
2

 
2

Other paid-in capital, principally premium on common stock
5,598

 
5,540

Retained earnings
2,073

 
1,660

Accumulated other comprehensive loss
(17
)
 
(18
)
Total Ameren Corporation shareholders’ equity
7,656

 
7,184

Noncontrolling Interests
142

 
142

Total equity
7,798

 
7,326

TOTAL LIABILITIES AND EQUITY
$
26,959

 
$
25,945

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

4



AMEREN CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) (In millions)
 
Nine Months Ended September 30,
 
2018
 
2017
Cash Flows From Operating Activities:
 
 
 
Net income
$
752

 
$
588

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
699

 
653

Amortization of nuclear fuel
71

 
71

Amortization of debt issuance costs and premium/discounts
16

 
16

Deferred income taxes and investment tax credits, net
212

 
366

Allowance for equity funds used during construction
(25
)
 
(16
)
Stock-based compensation costs
15

 
12

Other
21

 
(7
)
Changes in assets and liabilities:
 
 
 
Receivables
(129
)
 
(59
)
Inventories
(4
)
 
(20
)
Accounts and wages payable
(198
)
 
(183
)
Taxes accrued
92

 
138

Regulatory assets and liabilities
213

 
89

Assets, other
(2
)
 
18

Liabilities, other
(45
)
 
12

Pension and other postretirement benefits
(2
)
 
(31
)
Net cash provided by operating activities
1,686

 
1,647

Cash Flows From Investing Activities:
 
 
 
Capital expenditures
(1,689
)
 
(1,523
)
Nuclear fuel expenditures
(30
)
 
(52
)
Purchases of securities – nuclear decommissioning trust fund
(172
)
 
(187
)
Sales and maturities of securities – nuclear decommissioning trust fund
159

 
175

Other
13

 
3

Net cash used in investing activities
(1,719
)
 
(1,584
)
Cash Flows From Financing Activities:
 
 
 
Dividends on common stock
(334
)
 
(320
)
Dividends paid to noncontrolling interest holders
(5
)
 
(5
)
Short-term debt, net
36

 
(112
)
Maturities of long-term debt
(522
)
 
(425
)
Issuances of long-term debt
853

 
849

Issuances of common stock
56

 

Repurchases of common stock for stock-based compensation

 
(24
)
Employee payroll taxes related to stock-based compensation
(19
)
 
(15
)
Debt issuance costs
(9
)
 
(5
)
Other
1

 
(1
)
Net cash provided by (used in) financing activities
57

 
(58
)
Net change in cash, cash equivalents, and restricted cash
24

 
5

Cash, cash equivalents, and restricted cash at beginning of year
68

 
52

Cash, cash equivalents, and restricted cash at end of period
$
92

 
$
57

 
 
 
 
Noncash financing activity – Issuance of common stock for stock-based compensation
$
35

 
$

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

5



 
UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
STATEMENT OF INCOME
(Unaudited) (In millions)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Operating Revenues:
 
 
 
 
 
 
 
Electric
$
1,111

 
$
1,099

 
$
2,782

 
$
2,758

Natural gas
18

 
17

 
94

 
83

Total operating revenues
1,129

 
1,116

 
2,876

 
2,841

Operating Expenses:
 
 
 
 
 
 
 
Fuel
216

 
199

 
590

 
594

Purchased power
49

 
43

 
131

 
203

Natural gas purchased for resale
5

 
4

 
37

 
29

Other operations and maintenance
234

 
229

 
707

 
672

Depreciation and amortization
137

 
134

 
411

 
399

Taxes other than income taxes
94

 
95

 
258

 
255

Total operating expenses
735

 
704

 
2,134

 
2,152

Operating Income
394

 
412

 
742

 
689

Other Income, Net
16

 
16

 
45

 
48

Interest Charges
50

 
50

 
152

 
157

Income Before Income Taxes
360

 
378

 
635

 
580

Income Taxes
65

 
143

 
132

 
218

Net Income
295

 
235

 
503

 
362

Preferred Stock Dividends
1

 
1

 
3

 
3

Net Income Available to Common Shareholder
$
294

 
$
234

 
$
500

 
$
359

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

6



UNION ELECTRIC COMPANY (d/b/a AMEREN MISSOURI)
BALANCE SHEET
(Unaudited) (In millions, except per share amounts)
 
September 30, 2018
 
December 31, 2017
ASSETS
 
 
 
Current Assets:
 
 
 
Cash and cash equivalents
$

 
$

Advances to money pool
28

 

Accounts receivable – trade (less allowance for doubtful accounts of $8 and $7, respectively)
331

 
200

Accounts receivable – affiliates
16

 
11

Unbilled revenue
153

 
165

Miscellaneous accounts receivable
61

 
35

Inventories
385

 
388

Current regulatory assets
28

 
56

Other current assets
40

 
50

Total current assets
1,042

 
905

Property, Plant, and Equipment, Net
11,933

 
11,751

Investments and Other Assets:
 
 
 
Nuclear decommissioning trust fund
752

 
704

Regulatory assets
351

 
395

Other assets
305

 
288

Total investments and other assets
1,408

 
1,387

TOTAL ASSETS
$
14,383

 
$
14,043

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Current Liabilities:
 
 
 
Current maturities of long-term debt
$
336

 
$
384

Short-term debt

 
39

Accounts and wages payable
246

 
475

Accounts payable – affiliates
90

 
60

Taxes accrued
138

 
30

Interest accrued
62

 
54

Current regulatory liabilities
48

 
19

Other current liabilities
115

 
103

Total current liabilities
1,035

 
1,164

Long-term Debt, Net
3,668

 
3,577

Deferred Credits and Other Liabilities:
 
 
 
Accumulated deferred income taxes, net
1,636

 
1,650

Accumulated deferred investment tax credits
44

 
48

Regulatory liabilities
2,799

 
2,664

Asset retirement obligations
636

 
634

Pension and other postretirement benefits
204

 
213

Other deferred credits and liabilities
5

 
12

Total deferred credits and other liabilities
5,324

 
5,221

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


 


Shareholders’ 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
1,858

 
1,858

Preferred stock
80

 
80

Retained earnings
1,907

 
1,632

Total shareholders’ equity
4,356

 
4,081

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
14,383

 
$
14,043

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)
STATEMENT OF CASH FLOWS
(Unaudited) (In millions)
 
Nine Months Ended September 30,
 
2018
 
2017
Cash Flows From Operating Activities:
 
 
 
Net income
$
503

 
$
362

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
398

 
384

Amortization of nuclear fuel
71

 
71

Amortization of debt issuance costs and premium/discounts
4

 
5

Deferred income taxes and investment tax credits, net
4

 
55

Allowance for equity funds used during construction
(19
)
 
(15
)
Other
14

 
4

Changes in assets and liabilities:
 
 
 
Receivables
(156
)
 
(117
)
Inventories
3

 
(3
)
Accounts and wages payable
(168
)
 
(151
)
Taxes accrued
148

 
160

Regulatory assets and liabilities
149

 
48

Assets, other

 
19

Liabilities, other
7

 
4

Pension and other postretirement benefits
3

 
(7
)
Net cash provided by operating activities
961

 
819

Cash Flows From Investing Activities:
 
 
 
Capital expenditures
(664
)
 
(533
)
Nuclear fuel expenditures
(30
)
 
(52
)
Purchases of securities – nuclear decommissioning trust fund
(172
)
 
(187
)
Sales and maturities of securities – nuclear decommissioning trust fund
159

 
175

Money pool advances, net
(28
)
 
143

Net cash used in investing activities
(735
)
 
(454
)
Cash Flows From Financing Activities:
 
 
 
Dividends on common stock
(225
)
 
(332
)
Dividends on preferred stock
(3
)
 
(3
)
Short-term debt, net
(39
)
 

Maturities of long-term debt
(378
)
 
(425
)
Issuances of long-term debt
423

 
399

Debt issuance costs
(4
)
 
(3
)
Net cash used in financing activities
(226
)
 
(364
)
Net change in cash, cash equivalents, and restricted cash

 
1

Cash, cash equivalents, and restricted cash at beginning of year
7

 
5

Cash, cash equivalents, and restricted cash at end of period
$
7

 
$
6

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


8



 
AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
STATEMENT OF INCOME
(Unaudited) (In millions)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Operating Revenues:
 
 
 
 
 
 
 
Electric
$
448

 
$
462

 
$
1,333

 
$
1,343

Natural gas
116

 
112

 
569

 
510

Total operating revenues
564

 
574

 
1,902

 
1,853

Operating Expenses:
 
 
 
 
 
 
 
Purchased power
105

 
124

 
334

 
312

Natural gas purchased for resale
25

 
21

 
215

 
167

Other operations and maintenance
195

 
186

 
590

 
598

Depreciation and amortization
94

 
86

 
278

 
254

Taxes other than income taxes
32

 
33

 
108

 
101

Total operating expenses
451

 
450

 
1,525

 
1,432

Operating Income
113

 
124

 
377

 
421

Other Income, Net
11

 
5

 
30

 
8

Interest Charges
38

 
36

 
112

 
109

Income Before Income Taxes
86

 
93

 
295

 
320

Income Taxes
23

 
38

 
73

 
127

Net Income
63

 
55

 
222

 
193

Preferred Stock Dividends

 

 
2

 
2

Net Income Available to Common Shareholder
$
63

 
$
55

 
$
220

 
$
191

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


9



AMEREN ILLINOIS COMPANY (d/b/a AMEREN ILLINOIS)
BALANCE SHEET
(Unaudited) (In millions)
 
September 30, 2018
 
December 31, 2017
ASSETS
 
 
 
Current Assets:
 
 
 
Cash and cash equivalents
$

 
$

Accounts receivable – trade (less allowance for doubtful accounts of $14 and $12, respectively)
251

 
234

Accounts receivable – affiliates
36

 
9

Unbilled revenue
107

 
158

Miscellaneous accounts receivable
33

 
35

Inventories
140

 
134

Current regulatory assets
44

 
87

Other current assets
18

 
15

Total current assets
629

 
672

Property, Plant, and Equipment, Net
8,969

 
8,293

Investments and Other Assets:
 
 
 
Goodwill
411

 
411

Regulatory assets
743

 
822

Other assets
258

 
147

Total investments and other assets
1,412

 
1,380

TOTAL ASSETS
$
11,010

 
$
10,345

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Current Liabilities:
 
 
 
Current maturities of long-term debt
$
313

 
$
457

Short-term debt
108

 
62

Borrowings from money pool
45

 

Accounts and wages payable
275

 
337

Accounts payable – affiliates
44

 
70

Taxes accrued
15

 
19

Interest accrued
39

 
33

Customer deposits
84

 
69

Current environmental remediation
50

 
42

Current regulatory liabilities
48

 
92

Other current liabilities
161

 
177

Total current liabilities
1,182

 
1,358

Long-term Debt, Net
2,801

 
2,373

Deferred Credits and Other Liabilities:
 
 
 
Accumulated deferred income taxes, net
1,081

 
1,021

Regulatory liabilities
1,732

 
1,629

Pension and other postretirement benefits
284

 
285

Environmental remediation
113

 
134

Other deferred credits and liabilities
207

 
235

Total deferred credits and other liabilities
3,417

 
3,304

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


 


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

 

Other paid-in capital
2,093

 
2,013

Preferred stock
62

 
62

Retained earnings
1,455

 
1,235

Total shareholders’ equity
3,610

 
3,310

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
11,010

 
$
10,345


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)
STATEMENT OF CASH FLOWS
(Unaudited) (In millions)
 
Nine Months Ended September 30,
 
2018
 
2017
Cash Flows From Operating Activities:
 
 
 
Net income
$
222

 
$
193

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
278

 
254

Amortization of debt issuance costs and premium/discounts
10

 
10

Deferred income taxes and investment tax credits, net
56

 
161

Other
5

 
(1
)
Changes in assets and liabilities:
 
 
 
Receivables
21

 
59

Inventories
(7
)
 
(17
)
Accounts and wages payable
(44
)
 
(24
)
Taxes accrued
(40
)
 
(22
)
Regulatory assets and liabilities
63

 
45

Assets, other

 
(5
)
Liabilities, other
(40
)
 
(2
)
Pension and other postretirement benefits
(8
)
 
(19
)
Net cash provided by operating activities
516

 
632

Cash Flows From Investing Activities:
 
 
 
Capital expenditures
(947
)
 
(760
)
Other
10

 
6

Net cash used in investing activities
(937
)
 
(754
)
Cash Flows From Financing Activities:
 
 
 
Dividends on preferred stock
(2
)
 
(2
)
Short-term debt, net
46

 
118

Money pool borrowings, net
45

 
11

Maturities of long-term debt
(144
)
 

Issuances of long-term debt
430

 

Debt issuance costs
(5
)
 

Capital contribution from parent
80

 

Other
1

 
(1
)
Net cash provided by financing activities
451

 
126

Net change in cash, cash equivalents, and restricted cash
30

 
4

Cash, cash equivalents, and restricted cash at beginning of year
41

 
28

Cash, cash equivalents, and restricted cash at end of period
$
71

 
$
32

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


11



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)
September 30, 2018
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General
Ameren, headquartered in St. Louis, Missouri, is a public utility holding company whose primary assets are its equity interests in its subsidiaries. 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. Ameren has other subsidiaries that conduct other activities, such as providing shared services. Ameren evaluates competitive electric transmission investment opportunities as they arise.
Union Electric Company, doing business as Ameren Missouri, operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas distribution business in Missouri.
Ameren Illinois Company, doing business as Ameren Illinois, operates rate-regulated electric transmission, electric distribution, and natural gas distribution businesses in Illinois.
ATXI operates a FERC rate-regulated electric transmission business. ATXI is developing MISO-approved electric transmission projects, including the Illinois Rivers and Mark Twain projects, and placed the Spoon River project in service in February 2018.
Ameren’s financial statements 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. All tabular dollar amounts are in millions, unless otherwise indicated.
As of September 30, 2018, and December 31, 2017, Ameren had unconsolidated variable interests as a limited partner in various equity method investments, totaling $20 million and $17 million, respectively, included in “Other assets” on Ameren’s consolidated balance sheet. Ameren is not the primary beneficiary of these investments because it does not have the power to direct matters that most significantly affect the activities of these variable interest entities. As of September 30, 2018, the maximum exposure to loss related to these variable interests is limited to the investment in these partnerships of $20 million plus associated outstanding funding commitments of $17 million.
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 accompanying notes included in the Form 10-K.
Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents include short-term, highly liquid investments purchased with an original maturity of three months or less. Cash and cash equivalents subject to legal or contractual restrictions and not readily available for use for general corporate purposes are classified as restricted cash.
In November 2016, the FASB issued authoritative guidance that requires, including on a retrospective basis, restricted cash to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Our adoption of this guidance, effective January 2018, did not result in material changes to previously reported cash flows from operating, investing, or financing activities.

12



The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets and the statements of cash flows as of September 30, 2018 and 2017, and December 31, 2017 and 2016:
 
September 30, 2018
 
December 31, 2017
 
September 30, 2017
 
December 31, 2016
Ameren
Ameren
Missouri
Ameren
Illinois
Ameren
Ameren
Missouri
Ameren
Illinois
Ameren
Ameren
Missouri
Ameren
Illinois
Ameren
Ameren
Missouri
Ameren
Illinois
Cash and cash equivalents(a)
$
11

$

$

 
$
10

$

$

 
$
9

$

$

 
$
9

$

$

Restricted cash included in “Other current assets”
15

4

8

 
21

5

6

 
19

4

5

 
20

4

6

Restricted cash included in “Other assets”
63


63

 
35


35

 
27


27

 
22


22

Restricted cash included in “Nuclear decommissioning trust fund”
3

3

(b)

 
2

2

(b)

 
2

2

(b)

 
1

1

(b)

Total cash, cash equivalents, and restricted cash(c)
$
92

$
7

$
71

 
$
68

$
7

$
41

 
$
57

$
6

$
32

 
$
52

$
5

$
28

(a)
As presented on the balance sheets.
(b)
Not applicable.
(c)
As presented on the statements of cash flows.
Restricted cash included in Ameren’s other current assets primarily represents participant funds from Ameren (parent)’s DRPlus and funds held by an irrevocable Voluntary Employee Beneficiary Association (VEBA) trust, which provides health care benefits for active employees. Restricted cash included in Ameren Missouri’s and Ameren Illinois’ other current assets primarily represents funds held by the VEBA trust.
Restricted cash included in Ameren’s and Ameren Illinois’ other assets primarily represents amounts in a trust fund restricted for the use of funding certain asbestos-related claims and amounts collected under a cost recovery rider that are restricted for use in the procurement of renewable energy credits.
Supplemental Cash Flow Information
The following table provides noncash investing activity excluded from the statements of cash flows for the nine months ended September 30, 2018 and 2017:
 
September 30, 2018
 
September 30, 2017
Ameren(a)
Ameren
Missouri
Ameren
Illinois
Ameren(a)
Ameren
Missouri
Ameren
Illinois
Accrued capital expenditures
$
240

$
94

$
133

 
$
202

$
70

$
100

Net realized and unrealized gain  nuclear decommissioning trust fund
33

33

(b)

 
53

53

(b)

(a)
Includes amounts for Ameren registrant and nonregistrant subsidiaries.
(b)
Not applicable.
Accounts Receivable
“Accounts receivable – trade” on Ameren’s and Ameren Illinois’ balance sheets include certain receivables purchased at a discount from alternative retail electric suppliers that elect to participate in the utility consolidated billing program. At September 30, 2018, and December 31, 2017, “Other current liabilities” on Ameren’s and Ameren Illinois’ balance sheets included payables for purchased receivables of $40 million and $31 million, respectively.
For the three and nine months ended September 30, 2018 and 2017, the Ameren Companies recorded immaterial bad debt expense.

13



Asset Retirement Obligations
The following table provides a reconciliation of the beginning and ending carrying amount of AROs for the nine months ended September 30, 2018:
 
Ameren
Missouri
 
Ameren
Illinois(a)
 
Ameren
 
Balance at December 31, 2017
$
640

(b) 
$
4

 
$
644

(b) 
Liabilities settled
(4
)
 
(c)

 
(4
)
 
Accretion(d)
20

 
(c)

 
20

 
Change in estimates(e)
(14
)
 

 
(14
)
 
Balance at September 30, 2018
$
642

(b) 
$
4

 
$
646

(b) 
(a)
Included in “Other deferred credits and liabilities” on the balance sheet.
(b)
Balance included $6 million in “Other current liabilities” on the balance sheet as of both December 31, 2017, and September 30, 2018.
(c)
Less than $1 million.
(d)
Accretion expense attributable to Ameren Missouri was recorded as a decrease to regulatory liabilities.
(e)
Ameren Missouri changed its fair value estimate primarily due to a reduction in the cost estimate for closure of certain CCR storage facilities.
Company-owned Life Insurance
Ameren and Ameren Illinois have company-owned life insurance, which is recorded at the net cash surrender value. The net cash surrender value is the amount that can be realized under the insurance policies at the balance sheet date. As of September 30, 2018, the cash surrender value of company-owned life insurance at Ameren and Ameren Illinois was $256 million (December 31, 2017 – $265 million) and $120 million (December 31, 2017 – $129 million), respectively, while total borrowings against the policies were $113 million (December 31, 2017 – $120 million) at both Ameren and Ameren Illinois. Ameren and Ameren Illinois have the right to offset the borrowings against the cash surrender value of the policies and, consequently, present the net asset in “Other assets” on their respective balance sheets.
Stock-based Compensation
The following table summarizes Ameren's nonvested performance share unit and restricted stock unit activity for the nine months ended September 30, 2018:
 
Performance Share Units
 
Restricted Stock Units
 
Share Units
 
Weighted-average Fair Value per Share Unit
 
Stock Units
 
Weighted-average Fair Value per Stock Unit
Nonvested at January 1, 2018(a)
895,489

 
$
52.28

 

 
$

Granted
313,984

 
62.88

 
186,728

 
57.65

Forfeitures
(62,865
)
 
50.78

 
(4,964
)
 
58.99

Undistributed vested units(b)
(217,350
)
 
53.57

 
(19,742
)
 
59.01

Vested and distributed
(176,043
)
 
52.88

 

 

Nonvested at September 30, 2018(c)
753,215

 
$
56.31

 
162,022

 
$
57.44

(a)
Does not include 712,572 undistributed vested performance share units.
(b)
Undistributed vested units are awards that vested due to attainment of retirement eligibility by certain employees, but have not yet been distributed. For undistributed vested performance share units, the number of shares issued for retirement-eligible employees will vary depending on actual performance over the three-year performance period.
(c)
Does not include 548,542 undistributed vested performance share units and 19,742 undistributed vested restricted stock units.
Performance Share Units
A performance share unit vests and entitles an employee to receive shares of Ameren common stock (plus accumulated dividends) if, at the end of the three-year performance period, certain specified market conditions have been met and if the individual remains employed by Ameren through the required vesting period. The vesting period for share units awarded extends beyond the three-year performance period to the payout date, which is approximately 38 months after the grant date. In the event of a participant’s death or retirement at age 55 or older with five or more years of service, awards vest on a pro rata basis over the three-year performance period. The exact number of shares issued pursuant to a share unit varies from 0% to 200% of the target award, depending on actual company performance relative to the performance goals.
The fair value of each performance share unit granted in 2018 was determined to be $62.88, which was based on Ameren’s closing common share price of $58.99 at December 31, 2017, and lattice simulations. Lattice simulations are used to estimate expected share payout based on Ameren’s total shareholder return for a three-year performance period beginning January 1, 2018, relative to the designated

14



peer group. The significant assumptions used to calculate fair value included a three-year risk-free rate of 1.98% and volatility of 15% to 23% for the peer group.
Restricted Stock Units
Restricted stock units vest and entitle an employee to receive shares of Ameren common stock (plus accumulated dividends) if the individual remains employed with Ameren through the payment date of the awards. Generally, in the event of a participant’s death or retirement at age 55 or older with five or more years of service, awards vest on a pro rata basis. The payout date of the awards is approximately 38 months after the grant date. The fair value of each restricted stock unit is determined by Ameren’s closing common share price on the grant date.
Deferred Compensation
As of both September 30, 2018, and December 31, 2017, “Other deferred credits and liabilities” on Ameren’s balance sheet included deferred compensation obligations of $86 million recorded at the present value of future benefits to be paid.
Operating Revenues
In the first quarter of 2018, we adopted authoritative accounting guidance related to revenue from contracts with customers using the full retrospective method, with no material changes to the amount or timing of revenue recognition. We record revenues from contracts with customers for various electric and natural gas services, which primarily consist of retail distribution, electric transmission, and off-system arrangements. When more than one performance obligation exists in a contract, the consideration under the contract is allocated to the performance obligations based on the relative standalone selling price.
Electric and natural gas retail distribution revenues are earned when the commodity is delivered to our customers. We accrue an estimate of electric and natural gas retail distribution revenues for service provided but unbilled at the end of each accounting period.
Electric transmission revenues are earned as electric transmission services are provided.
Off-system revenues are primarily comprised of MISO revenues and wholesale bilateral revenues. MISO revenues include the sale of electricity, capacity, and ancillary services. Wholesale bilateral revenues include the sale of electricity and capacity. MISO-related electricity and wholesale bilateral electricity revenues are earned as electricity is delivered. MISO-related capacity and ancillary service revenues and wholesale bilateral capacity revenues are earned as services are provided.
Retail distribution, electric transmission, and off-system revenues, including the underlying components described above, represent a series of goods or services that are substantially the same and have the same pattern of transfer over time to our customers. Revenues from contracts with customers is equal to the amounts billed and our estimate of electric and natural gas retail distribution services provided but unbilled at the end of each accounting period. Revenues are billed at least monthly, and payments are due less than one month after goods and/or services are provided. See Note 13 – Segment Information for disaggregated revenue information.
For certain regulatory recovery mechanisms that are alternative revenue programs, rather than revenues from contracts with customers, we recognize revenues that have been authorized for rate recovery, are objectively determinable and probable of recovery, and are expected to be collected from customers within two years from the end of the year. Our alternative revenue programs include revenue requirement reconciliations, MEEIA, and VBA. These revenues are subsequently recognized as revenues from contracts with customers when billed, with an offset to alternative revenue program revenues.
The Ameren Companies elected not to include disclosure related to the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of the end of the reporting period for contracts with an initial expected term of one year or less. As of September 30, 2018 and 2017, our remaining performance obligations were immaterial.

15



Excise Taxes
Ameren Missouri and Ameren Illinois collect from their customers excise taxes, including municipal and state excise taxes and gross receipts taxes, that are levied on the sale or distribution of natural gas and electricity. The following table presents the excise taxes recorded on a gross basis in “Operating Revenues – Electric,” “Operating Revenues – Natural gas” and “Operating Expenses – Taxes other than income taxes” on the statements of income for the three and nine months ended September 30, 2018 and 2017:
 
Three Months
 
 
Nine Months
 
 
2018
 
2017
 
 
2018
 
2017
 
Ameren Missouri
$
52

 
$
51

 
 
$
133

 
$
122

 
Ameren Illinois
26

 
26

(a) 
 
89

 
82

(a) 
Ameren
$
78

 
$
77

(a) 
 
$
222

 
$
204

(a) 
(a)
Amounts have been adjusted from those previously reported to reflect additional excise taxes for the three and nine months ended September 30, 2017.
Earnings per Share
Earnings per basic and diluted share are computed by dividing “Net Income Attributable to Ameren Common Shareholders” by the weighted-average number of basic and diluted common shares outstanding, respectively, during the period. Earnings per diluted share is computed by dividing “Net Income Attributable to Ameren Common Shareholders” by the weighted-average number of diluted common shares outstanding during the period. Earnings per diluted share reflects the dilution that would occur if certain stock-based performance share units and restricted stock units were assumed to be settled. The number of potential common shares assumed to have been issued was 2.2 million and 1.9 million in the three and nine months ended September 30, 2018, respectively, and 2.1 million and 1.4 million, respectively, in the year-ago periods. There were no potentially dilutive securities excluded from the earnings per diluted share calculations for the three and nine months ended September 30, 2018 and 2017.
Accounting and Reporting Developments
In the first quarter of 2018, the Ameren Companies adopted authoritative accounting guidance on various topics. See the Operating Revenues section above for more information on our adoption of the guidance on revenue from contracts with customers. See Note 11 – Retirement Benefits for more information on our adoption of the guidance on the presentation of net periodic pension and postretirement benefit cost. See the Cash, Cash Equivalents, and Restricted Cash section above for more information on our adoption of the guidance on restricted cash. Our adoption of the guidance on the recognition and measurement of financial assets and financial liabilities did not have a material impact on our results of operations or financial position.
See Note 1 – Summary of Significant Accounting Policies under Part II, Item 8, of the Form 10-K for additional information about recently issued authoritative accounting standards relating to the measurement of credit losses on financial instruments and the reclassification of certain tax effects from accumulated OCI.
Leases
In February 2016, the FASB issued authoritative guidance that requires an entity to recognize assets and liabilities arising from all leases with a term greater than one year. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease will depend on its classification as a finance lease or operating lease. The guidance also requires additional disclosures to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. This guidance will affect the Ameren Companies’ financial position by increasing the assets and liabilities recorded relating to their operating leases. We are also assessing the impacts of this guidance on our results of operations, cash flows, and disclosures. We have selected a software vendor and are in the process of implementing system changes required for the implementation of this guidance. We are currently assessing our agreements to determine those that are within the scope of this guidance. This guidance will be effective for the Ameren Companies in the first quarter of 2019.
In July 2018, the FASB issued authoritative guidance that provides entities with an optional transition method for adopting the new leases standard. Under this optional transition method, the Ameren Companies may adopt the new leases standard by recognizing a cumulative-effect adjustment to our January 1, 2019, retained earnings balances. Periods prior to 2019 would continue to be presented and disclosed in the financial statements in accordance with current GAAP. We are currently assessing whether we will elect this optional transition method.

16



Fair Value Measurement Disclosures
In August 2018, the FASB issued authoritative guidance that affects disclosure requirements for fair value measurements. The guidance will be effective for the Ameren Companies in the first quarter of 2020, with early adoption permitted. We are currently assessing the impacts of this guidance on our disclosures.
Defined Benefit Plan Disclosures
In August 2018, the FASB issued authoritative guidance that affects disclosure requirements for defined benefit plans. The guidance will be effective for the Ameren Companies in the fourth quarter of 2020, and will require changes to be applied retrospectively to each period presented. Early adoption is permitted. We are currently assessing the impacts of this guidance on our disclosures.
Implementation Costs Incurred in Certain Cloud Computing Arrangements
In August 2018, the FASB issued authoritative guidance that aligns the requirements for capitalizing implementation costs incurred in certain hosting arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance requires capitalized implementation costs to be expensed over the term of the hosting arrangement and presented in the same line item in the statement of income as the fees of the associated hosting arrangement. Capitalized implementation costs must be presented in the balance sheet in the same line item that a prepayment for the fees of the associated hosting arrangement would be presented, and payments for capitalized implementation costs must be classified in the statement of cash flows in the same manner as payments for hosting arrangement fees. The Ameren Companies early adopted this guidance in the third quarter of 2018 and applied the guidance prospectively to all implementation costs incurred after the date of adoption. The amount of implementation costs that were capitalized in the third quarter of 2018 was immaterial.
SEC Disclosure Update and Simplification
In August 2018, the SEC adopted a final rule that requires, among other things, inclusion of a statement of changes in shareholders’ equity, or disclosure of such changes, and disclosure of the amount of dividends per share for each class of shares with respect to interim periods. The guidance will be effective for the Ameren Companies in the fourth quarter of 2018. We are currently assessing the impact of this guidance on our disclosures.
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
Missouri Senate Bill 564
On June 1, 2018, Missouri Senate Bill 564 was enacted. The section of the law applicable to the TCJA was effective immediately; the remaining sections, including the ability to elect PISA, became effective August 28, 2018. The law resulted in certain changes to the regulation of Ameren Missouri’s electric service business. These changes include the reduction of customer rates to pass through the effect of the reduction in the federal statutory corporate income tax rate enacted under the TCJA and, at each electric utility’s election, the use of PISA. The law required the MoPSC to authorize a reduction in Ameren Missouri’s rates to pass through the effect of the TCJA within 90 days of the law’s effective date. In July 2018, the MoPSC authorized Ameren Missouri to reduce its annual revenue requirement by $167 million and reflect that reduction in rates beginning August 1, 2018. The reduction included $74 million for the amortization of excess accumulated deferred income taxes. In addition, Ameren Missouri recorded a reduction to revenue and a corresponding regulatory liability of $60 million for the excess amounts collected in rates related to the TCJA from January 1, 2018, through July 31, 2018. The regulatory liability will be reflected in customer rates over a period of time to be determined by the MoPSC in the next regulatory rate review.
Ameren Missouri filed a notification with the MoPSC on September 1, 2018, to elect PISA. Under PISA, Ameren Missouri is permitted to defer and recover 85% of the depreciation expense and a weighted-average cost of capital return on rate base on certain property, plant, and equipment placed in-service after September 1, 2018, and not included in base rates. The rate base on which the return is calculated incorporates qualifying capital expenditures since the PISA election date as well as changes in total accumulated depreciation excluding retirements and plant-related deferred income taxes. The debt return on rate base is recognized in earnings as a reduction of “Interest Charges” until PISA deferrals are reflected in customer rates, while the equity return is recognized in earnings as “Operating Revenues – Electric” when billed to customers. Accumulated PISA deferrals earn carrying costs at the weighted-average cost of capital, and all approved PISA deferrals will be added to rate base prospectively and recovered over a period of 20 years following a regulatory rate review. Costs not included in the PISA deferral, including the remaining 15% of the depreciation expense and return on rate base, remain subject to regulatory

17



lag. Qualifying PISA capital expenditures exclude amounts related to new coal-fired, nuclear, and natural gas generating units and service to new customer premises. Amounts deferred under PISA were immaterial as of September 30, 2018.
As a result of Ameren Missouri’s PISA election, additional provisions of Missouri Senate Bill 564 apply, including limiting customer rate increases to a 2.85% compound annual growth rate in the average overall customer rate per kilowatthour, based on the electric rates that became effective in April 2017, less half of the 2018 savings from the TCJA that was passed on to customers. Additionally, Ameren Missouri’s electric base rates, as determined in the July 2018 MoPSC rate order, are frozen until April 1, 2020. Recoveries under the MEEIA, the FAC, and the RESRAM riders have not been frozen; however, except for costs recoverable under the MEEIA rider, Ameren Missouri will be unable to recover any amounts above the 2.85% cap from customers. If rate changes from the FAC or the RESRAM riders would cause rates to temporarily exceed the 2.85% cap, the overage will be deferred for future recovery in the next regulatory rate review; however, rates established in such regulatory rate review will be subject to the rate cap. Any deferred overages approved for recovery will be recovered in a manner consistent with costs recovered under PISA. Both the rate cap and PISA election will be effective through December 2023, unless Ameren Missouri requests and receives MoPSC approval of an extension through December 2028. Ameren Missouri’s PISA election supports Ameren Missouri’s ability to invest approximately $1 billion of incremental capital over the 2019 to 2023 period to strengthen and modernize Missouri’s electric grid.
Wind Generation Facilities and RESRAM
In the second quarter of 2018, Ameren Missouri entered into an agreement with a subsidiary of Terra-Gen, LLC to acquire, after construction, a 400-megawatt wind generation facility, which is expected to be located in northeastern Missouri. In May 2018, Ameren Missouri filed for a certificate of convenience and necessity with the MoPSC for the 400-megawatt facility. The MoPSC issued an order approving a unanimous stipulation and agreement regarding that requested certificate in October 2018. Also in October 2018, Ameren Missouri entered into an agreement with a subsidiary of EDF Renewables, Inc. to acquire, after construction, a wind generation facility of up to 157 megawatts, and filed for a certificate of convenience and necessity with the MoPSC. The MoPSC is expected to issue an order regarding that certificate by May 2019. The up to 157-megawatt facility is expected to be located in northwestern Missouri. Both facilities are expected to be completed in 2020 and would help Ameren Missouri comply with the state renewable energy standard. Each acquisition is subject to certain conditions, including the issuance of a certificate of convenience and necessity by the MoPSC, obtaining a MISO transmission interconnection agreement, approval by the FERC, and other customary contract terms and conditions.
As a part of its May 2018 filing, Ameren Missouri requested the MoPSC to authorize a proposed RESRAM that would allow Ameren Missouri to adjust customer rates on an annual basis without a traditional regulatory rate review. The October 2018 MoPSC order included approval of the RESRAM, without addressing recovery through the RESRAM of the 15% of capital investment not recovered under PISA, which was an objection raised by the MoOPC. Ameren Missouri anticipates a MoPSC decision resolving this remaining issue and approving the RESRAM tariff by December 2018. The RESRAM is designed to mitigate the impacts of regulatory lag for the cost of compliance with renewable energy requirements, including recovery of investments in wind generation and other renewables, by providing more timely recovery of costs and a return on investments not already provided for in customer rates or any other recovery mechanism. RESRAM regulatory assets will earn carrying costs at short-term interest rates.
Renewable Choice Program
In June 2018, the MoPSC approved Ameren Missouri’s Renewable Choice Program, which allows large commercial and industrial customers and municipalities to elect to receive up to 100 percent of their energy from renewable resources. The tariff-based program is designed to recover the costs of the election, net of changes in the market price of such energy. Based on customer contracts, the program enables Ameren Missouri to supply up to 400 megawatts of renewable wind energy generation, up to 200 megawatts of which it could own. As applicable, the addition of generation by Ameren Missouri would be subject to the issuance of a certificate of convenience and necessity by the MoPSC, obtaining transmission interconnection agreements with MISO or other RTOs, and approval by the FERC. This generation would be incremental to the expected renewable generation included in the 2017 IRP. Without extension, the option to elect into the program will terminate in the third quarter of 2023.
MEEIA
In June 2018, Ameren Missouri filed a proposed customer energy-efficiency plan with the MoPSC under the MEEIA. In October 2018, Ameren Missouri, the MoPSC staff, the MoOPC, and certain other intervenors filed a stipulation and agreement with the MoPSC with respect to that proposed plan. The proposed plan includes a three-year plan for a portfolio of customer energy-efficiency programs and a six-year plan for low-income energy-efficiency programs, along with a cost recovery mechanism. If the proposal is approved, Ameren Missouri intends to invest $226 million over the life of the plan, including $65 million per program year for the three-year period beginning March 2019. The proposed plan includes the continued use of the MEEIA rider, which allows Ameren Missouri to collect from or refund to customers any difference in actual MEEIA program costs and related lost revenues and the amounts collected from customers. In addition, similar to the MEEIA 2016 plan ending in February 2019, the proposed plan includes a performance incentive that would provide Ameren Missouri an opportunity to earn additional revenues by achieving certain customer energy-efficiency goals, including $30 million if 100% of the goals are

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achieved during the three-year period beginning March 2019. Additional revenues may be earned if Ameren Missouri exceeds 100% of its energy savings goals. A decision by the MoPSC in this proceeding is anticipated in November 2018.
The MEEIA 2016 program provided Ameren Missouri with a performance incentive to earn additional revenues by achieving certain customer energy-efficiency goals, including $27 million if 100% of the goals were achieved during the three-year period beginning March 2016, with the potential to earn more if Ameren Missouri’s energy savings exceeded those goals. In September 2017, Ameren Missouri received an order from the MoPSC approving Ameren Missouri’s energy savings results for the first year of the MEEIA 2016 programs. As a result of this order and in accordance with revenue recognition guidance, Ameren Missouri recognized $5 million of revenues in the first quarter of 2018 relating to the MEEIA 2016 performance incentive. In October 2018, Ameren Missouri received an order from the MoPSC approving Ameren Missouri’s energy savings results for the second year of the MEEIA 2016 programs. As a result of this order, Ameren Missouri will recognize $6 million of additional revenues in the fourth quarter of 2018 relating to the MEEIA 2016 performance incentive.
In July 2018, the Missouri Supreme Court overturned a 2016 decision by the Missouri Court of Appeals, Western District, which had upheld a 2015 MoPSC order regarding the determination of a certain input used to calculate the MEEIA 2013 performance incentive, and remanded the matter to the MoPSC. Upon issuance of a MoPSC order, Ameren Missouri expects to recognize an additional $9 million MEEIA 2013 performance incentive.
Illinois
Electric Distribution Service Rates
In April 2018, Ameren Illinois filed its annual electric distribution service formula rate update to establish the revenue requirement to be used for 2019 rates with the ICC. In November 2018, the ICC issued an order in Ameren Illinois’ annual update filing that approved a $72 million increase in Ameren Illinois’ electric distribution service rates beginning in January 2019. This order reflected an increase to the annual formula rate based on 2017 actual costs and expected net plant additions for 2018, and an increase to include the 2017 revenue requirement reconciliation adjustment. It also included a decrease for the conclusion of the 2016 revenue requirement reconciliation adjustment, which will be fully collected from customers in 2018, consistent with the ICC’s December 2017 annual update filing order. As of September 30, 2018, Ameren Illinois had recorded a regulatory liability of $25 million to reflect the difference between Ameren Illinois’ estimate of its 2018 revenue requirement and the revenue requirement reflected in customer rates, including interest.
Electric Customer Energy-Efficiency Investments
In June 2018, Ameren Illinois filed its annual electric customer energy-efficiency formula rate update to establish the revenue requirement to be used for 2019 rates with the ICC. In November 2018, the ICC issued an order that approved 2019 rates of $35 million for electric customer energy-efficiency investments, which represents an increase of $20 million from 2018 rates.
Income Tax Regulatory Mechanisms
In February 2018, the ICC granted Ameren Illinois’ request, filed in January 2018, to establish a rider to reduce Ameren Illinois’ electric distribution customer rates for the effect of the reduction in the federal statutory corporate income tax rate enacted under the TCJA and the return of excess deferred taxes, net of the increase in state income taxes enacted in July 2017. Ameren Illinois' electric distribution customer rates were reduced as a result of the rider beginning in the first quarter of 2018. The estimated reduction of $50 million per year will continue through 2019, as base rates will be adjusted to reflect the current income tax rates starting in 2020.
In April 2018, the ICC approved a rider for the difference between revenues billed under natural gas rates established pursuant to Ameren Illinois’ most recent natural gas rate order and the revenues that would have been billed had the state and federal tax rate changes discussed above been in effect. The rider required Ameren Illinois to record this difference as a regulatory liability beginning January 25, 2018. Ameren Illinois’ natural gas customer rates were reduced as a result of the rider beginning in May 2018, with an estimated reduction of up to $17 million to be reflected substantially over a one-year period.
2018 Natural Gas Delivery Service Regulatory Rate Review
In January 2018, Ameren Illinois filed a request with the ICC seeking approval to increase its annual rates for natural gas delivery service. In November 2018, the ICC issued an order approving a stipulation and agreement that will result in an annual natural gas rate increase of $32 million, based on a 9.87% return on common equity, a capital structure composed of 50% common equity, and a rate base of $1.6 billion. The new rates will be effective starting in November 2018. This increase reflects the reduction in the federal corporate income tax rate as a result of the TCJA, as well as the increase in the Illinois corporate income tax rate that became effective in July 2017, which collectively decreased annual rates by approximately $17 million. As a result of this order, rate base under the QIP rider has been reset to zero. Ameren Illinois used a 2019 future test year in this proceeding.

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ATXI’s Illinois Rivers Project
In August 2017, the Illinois Circuit Court for Edgar County dismissed several of ATXI’s condemnation cases related to one line segment in the Illinois Rivers project. These cases had been filed to obtain easements and rights of way necessary to complete the line segment. The court found that required notice was not given to the relevant landowners during the underlying ICC proceeding. In November 2017, ATXI appealed this decision to the Illinois Supreme Court. In October 2018, the Illinois Supreme Court reversed the Illinois Circuit Court for Edgar County’s decision and remanded the case for further proceedings. Absent the landowners pursuing rehearing, or a voluntary settlement, ATXI intends to file a motion to reinstate the condemnation cases in the Illinois Circuit Court for Edgar County in the fourth quarter of 2018. ATXI plans to complete the project by the end of 2019; however, delays associated with the condemnation proceedings or a rehearing arising from the Illinois Supreme Court’s ruling could delay the completion date. The estimated line segment capital expenditure investment is approximately $81 million, of which $38 million was invested as of September 30, 2018. The other eight line segments of the Illinois Rivers project are not affected by these proceedings.
Federal
FERC Complaint Cases
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 FERC-regulated transmission rate base under the MISO tariff from 12.38% to 9.15%. In 2016, the FERC issued a final order in the November 2013 complaint case, which lowered the allowed base return on common equity to 10.32%, or a 10.82% total allowed return on common equity with the inclusion of a 50 basis point incentive adder for participation in an RTO, effective since September 2016. The 10.82% allowed return on common equity may be replaced prospectively after the FERC issues a final order in the February 2015 complaint case, discussed below.
Since 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. MISO transmission owners subsequently filed a motion to dismiss the February 2015 complaint, as discussed below. The February 2015 complaint case seeks a further reduction in the allowed base return on common equity for FERC-regulated transmission rate base under the MISO tariff. In June 2016, an administrative law judge issued an initial decision in the February 2015 complaint case. If approved by the FERC, it would lower the allowed base return on common equity for the 15-month period of February 2015 to May 2016 to 9.70%, or a 10.20% total allowed return on equity with the inclusion of a 50 basis point incentive adder for participation in an RTO. It would also require customer refunds, with interest, for that 15-month period. A final FERC order would also establish the allowed return on common equity that will apply prospectively from the effective date of such order, replacing the current 10.82% total return on common equity. In the second quarter of 2017, the United States Court of Appeals for the District of Columbia Circuit vacated and remanded to the FERC an order in an unrelated case in which the FERC established the allowed base return on common equity methodology used in the two MISO complaint cases described above. In October 2018, the FERC issued an order addressing the remanded issues, which proposed a new methodology for determining the base return on equity and required further briefs from the participants. A final order is not expected until 2019. While this order provides insight on how the FERC may determine the return on equity in the MISO complaint cases, Ameren is unable to predict the impact of the outcome on the MISO FERC complaint cases at this time. As the FERC is under no deadline to issue a final order, the timing of the issuance of the final order in the February 2015 complaint case, or any potential impact to the amounts refunded as a result of the November 2013 complaint case, is uncertain.
In September 2017, MISO transmission owners, including Ameren Missouri, Ameren Illinois, and ATXI, filed a motion to dismiss the February 2015 complaint case with the FERC. The MISO transmission owners maintain that the February 2015 complaint was predicated on the now superseded 12.38% allowed base return on common equity and is therefore inapplicable given the current 10.32% allowed base return on common equity. The MISO transmission owners further maintain that the current 10.32% allowed base return on common equity has not been proven to be unjust and unreasonable based on information provided, including the base return on common equity methodology ranges set forth in the February 2015 complaint case and in the initial decision issued by an administrative law judge in June 2016. Additionally, the MISO transmission owners maintain that the February 2015 complaint should be dismissed because the approach utilized in the case to assert that a return on common equity was unjust and unreasonable was insufficient. That same approach was rejected by the United States Court of Appeals for the District of Columbia Circuit, as discussed above. The FERC is under no deadline to issue an order on this motion.
As of September 30, 2018, Ameren and Ameren Illinois had recorded current regulatory liabilities of $43 million and $25 million, respectively, to reflect the expected refunds, including interest, associated with the reduced allowed returns on common equity in the initial decision in the February 2015 complaint case. Ameren Missouri does not expect that a reduction in the FERC-allowed base return on common equity would be material to its results of operations, financial position, or liquidity.
FERC Federal Income Tax Proceeding and Formula Rate Change
In March 2018, the FERC granted a request filed in February 2018 by MISO transmission owners with forward-looking rate formulas,

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including Ameren Illinois and ATXI, to allow revisions to their 2018 electric transmission rates to reflect the effect of the reduction in federal income taxes enacted under the TCJA. Ameren Illinois and ATXI’s 2018 electric transmission rates have been reduced by $27 million and $23 million, respectively.
In May 2018, the FERC accepted Ameren Illinois and ATXI tariff filings to change the formula rate calculation. The change allows for the recovery or refund of both excess deferred income taxes resulting from tax law or rate changes and effect of permanent income tax differences and will be reflected in Ameren Illinois and ATXI’s electric transmission rates starting in January 2019.
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 affiliate borrowings. See Note 4 – Short-term Debt and Liquidity under Part II, Item 8, in the Form 10-K for a description of our indebtedness provisions and other covenants as well as a description of money pool arrangements.
The Missouri Credit Agreement and the Illinois Credit Agreement were not utilized for direct borrowings during the nine months ended September 30, 2018, but were used to support commercial paper issuances and to issue letters of credit. Based on commercial paper outstanding and letters of credit issued under the Credit Agreements, the aggregate credit capacity available under the Credit Agreements to Ameren (parent), Ameren Missouri, and Ameren Illinois, collectively, at September 30, 2018, was $1.6 billion. The Ameren Companies were in compliance with the covenants in their Credit Agreements as of September 30, 2018. As of September 30, 2018, the ratios of consolidated indebtedness to consolidated total capitalization, calculated in accordance with the provisions of the Credit Agreements, were 52%, 46%, and 48% for Ameren, Ameren Missouri, and Ameren Illinois, respectively.
Commercial Paper
The following table presents commercial paper outstanding, net of issuance discounts, as of September 30, 2018, and December 31, 2017:
  
September 30, 2018
 
December 31, 2017
Ameren (parent)
$
413

 
$
383

Ameren Missouri

 
39

Ameren Illinois
108

 
62

Ameren Consolidated
$
521

 
$
484

The following table summarizes the borrowing activity and relevant interest rates under Ameren (parent)’s, Ameren Missouri’s, and Ameren Illinois’ commercial paper programs for the nine months ended September 30, 2018 and 2017:
 
 
Ameren
(parent)
Ameren
Missouri
Ameren
Illinois
Ameren
Consolidated
2018
 
 
 
 
 
 
Average daily commercial paper outstanding at par value
 
$
431

 
$
81

$
117

$
629

Weighted-average interest rate
 
2.23
%
 
1.94
%
2.21
%
2.18
%
Peak commercial paper during period at par value(a)
 
$
543

 
$
481

$
442

$
1,295

Peak interest rate
 
2.45
%
 
2.42
%
2.55
%
2.55
%
2017
 
 
 
 
 
 
Average daily commercial paper outstanding at par value
 
$
669

 
$
7

$
78

$
754

Weighted-average interest rate
 
1.27
%
 
1.20
%
1.28
%
1.27
%
Peak commercial paper during period at par value(a)
 
$
841

 
$
64

$
193

$
948

Peak interest rate
 
1.50
%
 
1.41
%
1.50
%
1.50
%
(a)
The timing of peak outstanding commercial paper issuances varies by company. Therefore, the sum of individual company peak amounts may not equal the Ameren Consolidated peak commercial paper issuances for the period.
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. The average interest rate for borrowings under the money pool for the three and nine months ended September 30, 2018, was 2.00% and 2.02%, respectively (2017 – 1.24% and 1.18%, 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 and nine months ended September 30, 2018 and 2017.

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NOTE 4 – LONG-TERM DEBT AND EQUITY FINANCINGS
Ameren
For the three and nine months ended September 30, 2018, Ameren issued a total of 0.2 million and 0.9 million shares, respectively, of common stock under its DRPlus and 401(k) plan, and received proceeds of $16 million and $56 million, respectively. In addition, in the first quarter of 2018, Ameren issued 0.7 million shares of common stock valued at $35 million upon the vesting of stock-based compensation. Ameren did not issue any common stock during the first nine months of 2017.
In October 2018, Ameren filed a Form S-8 registration statement with the SEC, authorizing the offering of four million additional shares of its common stock under its 401(k) plan. Shares of common stock issuable under the 401(k) plan are, at Ameren’s option, newly issued shares, treasury shares, or shares purchased in the open market or in privately negotiated transactions.
Ameren Missouri
In April 2018, Ameren Missouri issued $425 million of 4.00% first mortgage bonds due April 2048, with interest payable semiannually on April 1 and October 1 of each year, beginning October 1, 2018. Ameren Missouri received proceeds of $419 million, which were used to repay outstanding short-term debt, including short-term debt that Ameren Missouri incurred in connection with the repayment of $179 million of its 6.00% senior secured notes that matured April 1, 2018.
In August 2018, $199 million principal amount of Ameren Missouri’s 5.10% senior secured notes matured and were repaid with cash on hand.
Ameren Illinois
In May 2018, Ameren Illinois issued $430 million of 3.80% first mortgage bonds due May 2028, with interest payable semiannually on May 15 and November 15 of each year, beginning November 15, 2018. Ameren Illinois received proceeds of $427 million, which were used to repay outstanding short-term debt, including short-term debt that Ameren Illinois incurred in connection with the repayment of $144 million of its 6.25% senior secured notes that matured April 1, 2018.
Indenture Provisions and Other Covenants
See Note 5 – Long-Term Debt and Equity Financings under Part II, Item 8, in the Form 10-K for a description of our indenture provisions and other covenants, as well as restrictions on the payment of dividends. At September 30, 2018, the Ameren Companies were in compliance with the provisions and covenants contained in their indentures and articles of incorporation, as applicable, and ATXI was in compliance with the provisions and covenants contained in its note purchase agreement.
Off-balance-sheet Arrangements
At September 30, 2018, none of the Ameren Companies had any significant off-balance-sheet financing arrangements, other than operating leases entered into in the ordinary course of business, letters of credit, and Ameren (parent) guarantee arrangements on behalf of its subsidiaries.

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NOTE 5 – OTHER INCOME, NET

The following table presents the components of “Other Income, Net” in the Ameren Companies’ statements of income for the three and nine months ended September 30, 2018 and 2017:
 
Three Months
 
Nine Months
 
 
2018
 
2017
 
2018
 
2017
 
Ameren:(a)
 
 
 
 
 
 
 
 
Other Income, Net
 
 
 
 
 
 
 
 
Allowance for equity funds used during construction
$
11

 
$
6

 
$
25

 
$
16

 
Interest income on industrial development revenue bonds
6

 
7

 
19

 
20

 
Other interest income
2

 

 
6

 
5

 
Non-service cost components of net periodic benefit income
17

(b) 
11

 
52

(b) 
33

 
Other income
2

 
1

 
5

 
3

 
Donations
(4
)
 

 
(15
)
 
(7
)
 
Other expense
(2
)
 
(2
)
 
(8
)
 
(9
)
 
Total Other Income, Net
$
32

 
$
23

 
$
84

 
$
61

 
Ameren Missouri:
 
 
 
 
 
 
 
 
Other Income, Net
 
 
 
 
 
 
 
 
Allowance for equity funds used during construction
$
8

 
$
6

 
$
19

 
$
15

 
Interest income on industrial development revenue bonds
6

 
7

 
19

 
20

 
Other interest income
1

 

 
2

 
1

 
Non-service cost components of net periodic benefit income
4

(b) 
5

 
13

(b) 
17

 
Other income