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 excise taxes on invested capital.

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 expects to make significant capital investments in its electric and natural gas infrastructure over the next five years to support reliability, grid modernization, and the state’s clean energy goals. The company remains focused on disciplined cost management and strategic capital allocation to deliver value for its customers and shareholders.

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 has also been active in the debt capital markets, issuing $350 million of 5.625% first mortgage bonds due 2055 in March 2025. The proceeds were used to repay $300 million of maturing long-term debt and short-term borrowings.

The company’s credit ratings remain solid, with an issuer/corporate credit rating of A3 from Moody’s and BBB+ from S&P. These investment-grade ratings provide Ameren Illinois with favorable access to capital markets to support its financing needs.

Conclusion

Ameren Illinois has delivered another quarter of strong financial performance, driven by continued investments in its electric and natural gas infrastructure and a constructive regulatory environment in Illinois. The company remains focused on controlling costs, improving efficiency, and executing its strategic plan to modernize its utility systems and support the state’s clean energy transition. With a solid financial position and ample liquidity, Ameren Illinois is well-positioned to continue delivering value for its customers and shareholders in the years ahead.