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 expenses.

Depreciation and amortization expenses increased by $6 million, or 4%, due to additional investments in the company’s electric and natural gas 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 going into 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 remains focused on disciplined cost management, strategic capital allocation, and advocating for regulatory frameworks that support investment in critical infrastructure. The company expects to make significant capital expenditures over the next five years to upgrade its electric and natural gas systems, with a major portion directed towards its transmission and distribution networks.

Strengthening the Balance Sheet and Liquidity

Ameren Illinois has a strong financial position to support its investment plans. As of March 31, 2025, the company had $828 million in available liquidity under its credit facility, in addition to $23 million in cash and cash equivalents.

During the first quarter of 2025, Ameren Illinois issued $350 million of 5.625% first mortgage bonds due 2055 to repay $300 million of maturing long-term debt and reduce short-term borrowings. The company also paid $75 million in common stock dividends to its parent, Ameren Corporation.

Ameren Illinois’ credit ratings remain solid, with an issuer/corporate credit rating of ‘BBB+’ from S&P and ‘A3’ from Moody’s. These investment-grade ratings provide the company with access to capital markets on favorable terms to fund its infrastructure investments.

Conclusion

Ameren Illinois has delivered strong financial results in the first quarter of 2025, driven by continued growth in its rate base and a focus on operational efficiency. The company’s constructive regulatory environment, disciplined capital allocation, and solid financial position position it well to make the necessary investments to serve its customers and support the state’s clean energy transition. Ameren Illinois remains committed to providing safe, reliable, and affordable energy services to its communities.