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.
• A $23 million, or 18%, increase in revenues at Ameren Illinois Transmission, also due to higher recoverable expenses and increased capital investments.
• A $20 million, or 5%, increase in revenues at Ameren Illinois Natural Gas, primarily due to higher amortization of previously deferred natural gas costs.

The revenue growth reflects Ameren Illinois’ continued investments in upgrading and modernizing its electric and natural gas infrastructure to improve reliability and support the state’s clean energy goals.

Controlling Costs and Improving Efficiency

Ameren Illinois has also been focused on managing its operating expenses. Other operations and maintenance expenses increased by $26 million, or 12%, compared to the first quarter of 2024. This was primarily due to:

• A $13 million increase in bad debt costs, as a higher base level of these expenses is now included in customer rates.
• A $4 million increase in costs associated with customer energy-efficiency investments under formula ratemaking.
• A $2 million increase in costs to comply with the state’s Clean Energy Jobs Act.

However, Ameren Illinois was able to offset some of these increases through a $3 million decrease in labor expenses resulting from steps taken to align operations and maintenance costs.

Depreciation and amortization expenses increased by $6 million, or 4%, due to additional investments in the company’s infrastructure. Taxes other than income taxes also increased by $7 million, or 16%, primarily due to higher gross receipts taxes and increased capital investment-related taxes.

Regulatory Updates and Outlook

Ameren Illinois continues to operate under a constructive regulatory framework that supports the company’s investments and allows for timely recovery of costs.

In December 2024, the Illinois Commerce Commission (ICC) issued an order approving revenue requirements for Ameren Illinois’ electric distribution business for 2024 through 2027. This represents a cumulative four-year increase of $308 million, which will support the company’s continued infrastructure investments.

In January 2025, Ameren Illinois filed a request with the ICC to increase its annual revenues for natural gas delivery service by $140 million. A decision on this request is expected by early December 2025, with new rates taking effect at that time.

Ameren Illinois also continues to make investments in energy-efficiency programs, which are recovered through a rider mechanism. In February 2025, the company filed a plan with the ICC to invest up to $126 million per year in electric energy-efficiency programs from 2026 through 2029.

Looking ahead, Ameren Illinois expects to make significant capital investments in its electric and natural gas infrastructure over the next five years, with a focus on grid modernization, renewable energy integration, and environmental compliance. The company remains committed to delivering safe, reliable, and affordable service to its customers while also supporting the state’s clean energy goals.

Solid Financial Position and Liquidity

Ameren Illinois maintains a strong financial position, with access to ample liquidity to fund its capital program. As of March 31, 2025, the company had $828 million of available liquidity under its credit facility, in addition to $23 million in cash and cash equivalents.

Ameren Illinois’ credit ratings from Moody’s and S&P remain strong, at A3 and BBB+, respectively, for its issuer/corporate credit rating. This allows the company to access the capital markets on favorable terms to support its financing needs.

The company’s capital structure remains well-balanced, with a target equity ratio of 50% to maintain its investment-grade credit profile and support its growing rate base. Ameren Illinois expects to continue issuing long-term debt and equity to fund its capital expenditures and maintain its strong financial position.

Conclusion

Ameren Illinois has delivered solid financial performance in the first quarter of 2025, driven by continued investments in its electric and natural gas infrastructure and a constructive regulatory environment. The company remains focused on controlling costs, improving efficiency, and supporting the state’s clean energy transition, all while maintaining a strong financial position to fund its long-term growth plans. Ameren Illinois is well-positioned to continue delivering value to its customers, communities, and shareholders.