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 Increases and Higher Sales Volumes

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:

• Higher electric distribution and transmission base rates, which increased revenues by $47 million. The Illinois Commerce Commission (ICC) approved revenue requirement increases for Ameren Illinois’ electric distribution business in December 2024, allowing the company to recover higher non-power supply costs and increased capital investments.

• Increased electric and natural gas sales volumes, which added an estimated $38 million in revenues. This was largely due to colder winter weather in 2025 compared to 2024, leading to higher heating demand from residential and commercial customers.

• Growth in revenues from Ameren Illinois’ energy efficiency programs, which increased by $5 million as the company continued to invest in and recover costs for these customer initiatives.

• Higher transmission revenues of $23 million, reflecting increased capital investments and recoverable expenses for Ameren Illinois’ electric transmission business.

Controlling Costs and Improving Efficiency

While revenues increased, Ameren Illinois also effectively managed its operating expenses. Other operations and maintenance expenses increased by $26 million, or 12%, primarily due to:

• $13 million in higher bad debt costs, as Ameren Illinois increased the base level of expenses included in customer rates for this rider.

• $4 million in additional costs related to customer energy efficiency programs under formula ratemaking.

• $2 million in increased costs to comply with the Climate and Equitable Jobs Act (CEJA).

However, these increases were partially offset by a $3 million decrease in natural gas operations and maintenance expenses, as the company aligned its costs with the ICC’s November 2023 natural gas rate order.

Depreciation and amortization expenses increased by $6 million, or 4%, due to higher investments in Ameren Illinois’ electric and natural gas infrastructure. Taxes other than income taxes also rose by $7 million, or 16%, primarily from higher gross receipts taxes on increased sales volumes.

Constructive Regulatory Environment Supports Investment and Earnings

Ameren Illinois continues to benefit from a supportive regulatory framework that allows the company to recover its costs and earn a reasonable return on its investments. Key regulatory developments include:

• The ICC’s December 2024 order, which approved revenue requirements for Ameren Illinois’ electric distribution business that will increase from $1.2 billion in 2024 to $1.4 billion by 2027. This will support the company’s continued investment in grid modernization and reliability improvements.

• Ameren Illinois’ ability to reconcile its actual electric distribution revenue requirement to the approved amount on an annual basis, ensuring timely cost recovery.

• The Revenue Balancing Adjustment (RBA), which decouples Ameren Illinois’ electric distribution revenues from sales volumes, protecting the company from the impacts of customer energy efficiency and conservation efforts.

• Illinois law that allows Ameren Illinois to earn a return on its energy efficiency program investments, providing an incentive to continue expanding these customer-focused initiatives.

• The pending ICC proceeding for Ameren Illinois’ natural gas delivery service rate case, which the company filed in January 2025 seeking a $140 million annual revenue increase. A decision is expected by the end of 2025.

These regulatory mechanisms help mitigate the effects of regulatory lag and support Ameren Illinois’ ability to make the necessary investments to modernize its electric and natural gas systems, improve reliability, and advance clean energy goals.

Investing in the Future of Energy

Ameren Illinois continues to make significant capital investments to enhance its electric and natural gas infrastructure. In the first quarter of 2025, the company invested $363 million, a 3% increase compared to the same period in 2024.

Key investment areas include:

• Electric distribution system upgrades to improve reliability and accommodate increased electrification and renewable energy integration.
• Natural gas system enhancements to ensure safe and reliable service.
• Transmission projects, including Ameren Illinois’ portion of the MISO long-range transmission plan, which will strengthen the regional grid and enable the integration of more renewable generation.

Ameren Illinois’ capital expenditure plan calls for investing up to $7 billion over the next five years to modernize its energy delivery systems and support the transition to a clean energy future.

Outlook: Continued Growth and Commitment to Customers and the Environment

Looking ahead, Ameren Illinois is well-positioned to build on its strong financial performance and continue delivering value to its customers, communities, and shareholders. The company’s constructive regulatory environment, disciplined cost management, and strategic capital investments are expected to drive sustained earnings growth.

Ameren Illinois remains focused on enhancing the reliability and resiliency of its electric and natural gas systems, while also advancing clean energy initiatives. The company’s energy efficiency programs, support for renewable energy integration, and efforts to decarbonize its natural gas distribution system are all key priorities.

By maintaining a balanced approach to operations, investment, and regulatory engagement, Ameren Illinois is confident in its ability to meet the evolving energy needs of its customers, support the transition to a sustainable energy future, and generate long-term value for its shareholders.