Ameren Illinois Delivers Solid Financial Performance in 2025

Ameren Illinois, a subsidiary of the Ameren Corporation, has reported strong financial results for the first quarter of 2025. The company’s net income available to its common shareholder increased to $236 million, up from $215 million in the same period last year.

Revenue Growth Driven by Rate Base Investments

Ameren Illinois’ total revenues increased by $100 million, or 10%, to $1.1 billion in the first quarter of 2025 compared to the same period in 2024. This growth was primarily driven by:

• A $66 million, or 13%, increase in revenues at Ameren Illinois Electric Distribution, due to higher recoverable non-purchased power expenses and increased capital investments. The company’s formula ratemaking mechanism allows it to recover these costs and earn a return on its investments.

• A $23 million, or 18%, increase in revenues at Ameren Illinois Transmission, also due to higher recoverable expenses and increased capital investments. Ameren Illinois Transmission uses a forward-looking formula ratemaking structure to set its transmission rates.

• A $20 million, or 5%, increase in revenues at Ameren Illinois Natural Gas, primarily due to higher amortization of previously deferred natural gas costs that are recovered from customers through the company’s purchased gas adjustment clause.

Controlling Costs and Improving Efficiency

Ameren Illinois’ other operations and maintenance expenses increased by $26 million, or 12%, in the first quarter of 2025 compared to the same period in 2024. This was largely due to:

• A $13 million increase in bad debt costs, which are recovered from customers through a rider mechanism.
• A $4 million increase in costs associated with the company’s energy efficiency programs, which are also recovered from customers.
• A $2 million increase in costs to comply with the state’s Clean Energy Jobs Act.

However, Ameren Illinois Natural Gas was able to decrease its other operations and maintenance expenses by $3 million, or 5%, due to lower labor costs.

Investing in Infrastructure and the Clean Energy Transition

Ameren Illinois continues to make significant investments in its electric and natural gas utility infrastructure to improve reliability, modernize the grid, and support the state’s clean energy goals. The company invested $363 million in capital projects during the first quarter of 2025, including:

• $167 million at Ameren Illinois Electric Distribution for distribution system upgrades and grid modernization.
• $137 million at Ameren Illinois Transmission for projects to expand and reinforce the high-voltage transmission network.
• $59 million at Ameren Illinois Natural Gas for pipeline replacements and other system improvements.

These investments are expected to support Ameren Illinois’ long-term growth and enable the company to continue providing safe, reliable, and affordable service to its customers.

Regulatory Updates and Outlook

Ameren Illinois operates under a constructive regulatory framework in Illinois that supports infrastructure investment and timely cost recovery. Key regulatory developments include:

• In December 2024, the Illinois Commerce Commission (ICC) approved revenue requirements for Ameren Illinois’ electric distribution business that will result in a cumulative four-year increase of $308 million through 2027. This will support the company’s continued investments in the electric grid.

• In January 2025, Ameren Illinois filed a request with the ICC to increase its annual natural gas delivery service revenues by $140 million. A decision is expected by the end of 2025, with new rates taking effect in December 2025.

• Ameren Illinois continues to implement its multi-year rate plan (MYRP) for electric distribution, which allows for annual adjustments to rates based on the company’s actual costs and investments. This regulatory mechanism helps mitigate the effects of regulatory lag.

• The company is also actively engaged in the ICC’s “Future of Gas” proceeding, which is exploring issues related to the decarbonization of the natural gas distribution system in Illinois.

Looking ahead, Ameren Illinois remains focused on executing its capital investment plan, maintaining operational excellence, and working constructively with regulators to support the transition to a clean energy future. The company is well-positioned to continue delivering value to its customers and shareholders.

Conclusion

Ameren Illinois’ strong financial performance in the first quarter of 2025 demonstrates the company’s ability to effectively manage its operations and investments within a supportive regulatory environment. By continuing to invest in critical infrastructure and adapting to evolving energy policies, Ameren Illinois is poised to maintain its position as a leading utility in Illinois and contribute to the state’s clean energy goals.