Ameren Q4 2024 Earnings Report

Ameren EPS Results

• Actual EPS: $0.77
• Consensus EPS: $0.83
• Beat/Miss: Missed by -$0.06
• One Year Ago EPS: $0.60

Ameren Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $1.86 billion
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Ameren Announcement Details

• Quarter: Q4 2024
• Date: 2/13/2025
• Time: After Market Closes
• Conference Call Date: Friday, February 14, 2025
• Conference Call Time: 10:00AM ET

Ameren (NYSE:AEE), together with its subsidiaries, operates as a public utility holding company in the United States. The company operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. It engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution business. In addition, the company generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar. It serves residential, commercial, and industrial customers. The company was founded in 1881 and is headquartered in Saint Louis, Missouri.

Ameren Q4 2024 Earnings Call Transcript

Presentation

[Andrew Kirk, Director, IR at Ameren]

Forward looking statements. Please refer to the forward looking statements section in the news release we issued yesterday as well as our SEC filings for more information about the various factors that could cause actual results to differ materially from those anticipated. Now here's Marty.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Thanks, Andrew. Good morning, everyone, and thank you for joining us. This morning, we will discuss 2024 financial results, recap events and accomplishments, and look ahead to 2025 and beyond. What you will hear is that the Ameren team's collective efforts produce strong results operationally and financially in 2024. And just as important, the team accomplished strategic goals that position our company to provide higher levels of satisfaction for our customers and strong returns for our shareholders in the years ahead.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

In 2025, we are again set up to deliver strong results, but also to take meaningful steps towards enabling our communities to benefit from significant economic development opportunities. Those opportunities offer direct investment in our states, bringing jobs and incremental tax revenue. And for Ameren, as we discuss our plans today, it means sales growth and the need to accelerate capital investments to meet the energy needs driven by that industrial demand. Starting on Page four, we continue to be guided by our three pillar strategy to invest in rate regulated infrastructure, to enhance regulatory frameworks and advocate for responsible energy policy, and optimize our operating performance. This strategy has served us well for the last decade and we will remain focused on solid execution year in and year out to maximize value for our customers, communities and shareholders.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

With that, let me summarize our 2024 performance on Page five. I'm pleased to say that we accomplished all our key business objectives outlined at this time last year and on this page. Importantly, we strategically invested approximately $4,300,000,000 in energy infrastructure, secured timely regulatory approvals for future investment and prudently managed our operating costs while delivering reliable energy service. And yesterday, we announced 2024 adjusted earnings of 4.63 per share compared to earnings of $4.38 per share in 2023. This result was above our 2024 adjusted earnings guidance midpoint.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Turning to Page six, which highlights the benefits of the investments we are making for our customers. The successful execution of our strategy continues to drive improved reliability and strong customer service, while keeping customer rates low in comparison to the national and Midwest averages. Further, our ongoing infrastructure investments improve grid resilience as demonstrated by the performance of our system during severe winter storms in early January of this year. Despite challenging conditions, our grid improvements prevented over three point five million minutes of potential outage time across our service territories in Missouri and Illinois. Importantly, we had no issues on the more than two fifty miles of power lines that have already been updated through Ameren Missouri's Smart Energy Plan.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

On Page seven, we summarize our strong performance for shareholders over time. Our goal, like we've said in the past, is to deliver at the midpoint or higher within our earnings guidance range. Our weather normalized adjusted earnings per share have risen at an approximate 7.6% compound annual growth rate since 2013, while our annual dividends paid per share have increased approximately 68%. This has driven a strong total return of nearly 250% for our shareholders over the same period, which was significantly above utility index averages. Moving to Page eight, as we look to the opportunities ahead.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

In 2025, our focus will be on continuing to provide safe, reliable service to our customers at competitive rates, while bringing additional growth opportunities to our states. We'll do this first and foremost by investing approximately 4,200,000,000 in electric, natural gas and transmission infrastructure to bolster the safety, security, reliability and responsiveness of the energy grid. Further, we're focused on enhancing our generation plans to meet customers' needs, achieving constructive regulatory outcomes and advocating for policies that enhance reliability and resource adequacy, as well as attracting new businesses to our communities. As always, while we work to accomplish these objectives, we will remain focused on operating as efficiently and effectively as possible. Moving to Page nine for an update on our long term growth outlook.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

We continue to expect 2025 earnings to be in a range of $4.85 per share to $5.05 per share. The midpoint of this range represents approximately 7% earnings per share growth compared to our adjusted 2024 earnings results. Building on the execution of our strategy and track record of strong earnings growth, we expect to deliver 6% to 8% compound annual earnings per share growth from 2025 through 2029 using the midpoint of our 2025 guidance of $4.95 per share as the base. We're excited about the robust sales growth and energy infrastructure investment opportunities in front of us, which strengthen our confidence in our ability to deliver strong long term earnings growth. I'll speak more about those things in a moment.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

In addition to growing earnings per share, last week, Ameren's Board of Directors approved a quarterly dividend increase of approximately 6%, resulting in an annualized dividend rate of $2.84 per share. This represents our twelfth consecutive year of increasing our dividend, which reflects continued confidence by Ameren's Board of Directors in our business outlook and management's ability to execute our strategy. Looking ahead, we expect to grow our dividend in line with our long term earnings per share growth expectations and for our dividend payout ratio to range from 55% to 65% of earnings per share. Combined, these elements support our strong total shareholder return proposition. Turning to Page 10 for more on the foundation of our earnings outlook.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Our strong long term earnings growth expectation is driven by robust rate based growth, reflecting investment in energy infrastructure included in Ameren Missouri's Smart Energy Plan, which incorporates its preferred resource plan Ameren Illinois' multi year rate plan and projects awarded to Ameren in MISO's long range transmission planning. Today, we are rolling forward our five year investment plan. And as you can see, we expect to grow our rate base at a 9.2% compound annual rate from 2024 through 2029. This robust rate base growth is driven by a 20% increase in our five year capital plan compared to the previous capital plan laid out last February, primarily reflecting accelerated generation needed to serve our updated sales growth expectations. Now turning to Page 11 for more detail on the growth opportunities in Missouri driving the significant increase in our capital plan.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

We expect tremendous opportunities for economic growth over the next five to seven years. Our region's economy spans multiple sectors from aviation, biotechnology, chemicals, financial services, beverage and food manufacturing, life and plant sciences to healthcare and logistics and a variety of other manufacturing concerns. And increasingly, it is an attractive location for data centers. Based on our robust economic development pipeline, we are now expecting our weather normalized retail sales to increase approximately 5.5% compounded annually from 2025 through 2029 compared to our prior plan expectations of flat to up 0.5%. This sales growth expectation is consistent with the notice we filed with the Missouri Public Service Commission of our intention to update our preferred resource plan.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

That plan assumes approximately 500 megawatts of load growth by the end of twenty twenty seven, a total of one gigawatt by the end of twenty twenty nine and one point five gigawatts by the February. Since our third quarter earnings call, we have signed additional construction agreements with data center developers for 1.5 gigawatts of new load to be interconnected to our transmission system, bringing our total to approximately 1.8 gigawatts. These construction agreements are subject to acceptance of a modified industrial tariff under which new customers would receive energy service. Earlier this week, we submitted the necessary transmission load requests related to these agreements to MISO for expedited project review and expect approval in April. Further, we are actively working to propose a modified tariff for large industrial customers, including data center customers, and we expect to file for approval of the tariff with the Missouri Public Service Commission by the second quarter.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

While there's no deadline for commission approval, we are optimistic we'd receive a decision and that the tariff would be in effect before the end of the year. We remain aligned with key stakeholders across the state in our efforts to attract new businesses to the region. Our economic development pipeline beyond our current construction agreements remains robust, and we will continue to pursue each opportunity vigorously to maximize value for our customers and communities. As the green shading on our slide indicates, a range of sales growth outcomes could ultimately occur. But based on our planned generation resource build out, we expect to have the capacity to serve two gigawatts of new demand by 02/1932 and even more thereafter.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Moving then to Page 12 for an update on Missouri's generation plans. Considering the significant sales growth potential, the lead time needed to construct new generation and other key considerations, Ameren Missouri notified the Missouri PSC that we are changing the preferred resource plan in our September 2023 IRP, which lays out generation our generation plan for the next twenty years. As mentioned, our new preferred plan is designed to serve 1.5 gigawatts of additional demand by 02/1932. And as I mentioned, it provides for a range of outcomes. The key objectives of our resource planning remain the same, a balanced mix of resources to provide reliable, lowest cost and cleaner energy for our customers.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Our preferred plan calls for acceleration and expansion of natural gas generation and battery storage, acceleration of solar generation investment, potential extension of the life of our SUE Energy Center by up to three years, and investment in additional nuclear generation by 02/1940. In total, the change in preferred plan represents the addition of 2.3 gigawatts of generation capacity by 02/1935 and when factoring in updated costs for all planned resources represents approximately $7,000,000,000 of increased investment by 02/1935 compared to the 2023 IRP. Our execution of this investment plan will lay the foundation for reliable economic expansion in Missouri. For further details on the differences between the preferred resource plan from the 2023 IRP and new 2025 preferred resource plan, see Page 31 of this presentation. Turning to Page 13 for an update on the new generation recently placed in service or under development.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

This past year was just a start to the robust generation portfolio additions. Three new solar facilities totaling 500 megawatts and representing approximately 1,000,000,000 of investment were placed in service during the fourth quarter of twenty twenty four as planned. Combined, the three facilities are expected to generate energy sufficient to power 92,000 homes annually. And we continue to execute our IRP. We have another 1,200 megawatts of approved generation currently under construction.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

And we expect to file a request with the Missouri PSC for approval of additional generation and battery energy storage in the coming months. Moving now to Page 14 for a transmission update. In December, MISO approved a nearly $22,000,000,000 Tranche 2.1 portfolio, which is expected to provide significant reliability and capacity benefits for the region. MISO has already selected Ameren to lead $1,300,000,000 worth of these critical grid infrastructure projects in Missouri and Illinois. The portfolio also includes $6,500,000,000 of projects, which will be open for competitive bid, of which approximately $1,800,000,000 are in Illinois.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

We believe we are well positioned to compete for all these opportunities as we have a strong track record of developing and operating cost effective and high quality transmission infrastructure. MISO and its transmission owners will continue to assess the current long range transmission future scenarios to support our region's energy needs in the years ahead. This analysis is expected to be followed by development of the Tranche 2.2 project portfolio. Moving to Page 15 for a legislative update. In January, the Missouri legislative session began.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Several bills are currently under consideration, including the Power Predictability and Reliability Act, the Missouri First Transmission Act, proposed modifications to integrated resource planning, and the opportunity for future test year regulatory frameworks for natural gas and water utilities. While these bills are at various stages in the legislative process, they collectively demonstrate Missouri's commitment to enabling a reliable and efficient energy future and supporting economic growth and job creation within our communities. Ameren will remain actively engaged with policymakers and key stakeholders in the months ahead to advocate for constructive energy policy. Turning to Page 16 for an update on our ten year investment pipeline. Looking ahead, we have a robust pipeline of investment opportunities of over $63,000,000,000 that will deliver significant value to all of our stakeholders by making our energy grid more reliable, stronger and smarter.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

In addition, these investments will support many thousands of jobs within our local economies. Of course, constructive energy policies that support robust investment in energy infrastructure will be critical to meeting our region's energy needs and delivering on our customers' expectations. Turning now to Page seventeen to sum up our value proposition. We remain convinced that the execution of our strategy in 2025 and beyond will continue to deliver superior value to our customers and shareholders. Our earnings growth expectations are driven by strong compound annual rate base growth of 9.2% and strategic allocation of infrastructure investment to each of our business segments based on their regulatory frameworks.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Investment in Amarin presents an attractive opportunity for those seeking a high quality utility growth story. Combined, our strong long term 6% to 8% earnings growth plan and an attractive and growing dividend result in a compelling total return story. Further, we have a strong track record of execution and an experienced management team. I'm confident in Ameren's team's ability to execute our investment plans and other elements of our strategy across all four of our business segments. Again, thank you all for joining us today, and I'll now turn the call over to Michael.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Thanks, Marty, and good morning, everyone. I'll begin on Page 19 of our presentation with our 2024 earnings results. Yesterday, we reported 2024 adjusted earnings of $4.63 per share compared to earnings of $4.38 per share in 2023. Our 2024 earnings exclude two charges totaling $0.21 per share. The first is related to the NSR settlement approved by the U.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

S. District Court for the Eastern District of Missouri for the Rush Island Energy Center. The second is related to the Federal Energy Regulatory Commission's order on base return on equity. On Page 20, we summarize key drivers impacting adjusted earnings at each segment. Our strong 2024 adjusted earnings results were largely driven by our strategic infrastructure investments.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

In addition, weather normalized retail sales grew approximately 2% across Ameren Missouri with 2%, one point five % and three % growth in our residential, commercial and industrial classes respectively. Notably, industrial sales continue to remain robust, driven largely by growth from customers in the manufacturing and technology sectors. This year sales growth reflects the strong economy across our service territory, which will serve as a solid foundation for future potential growth. Our focus remains on balancing necessary investments with prudent cost management to support both system reliability and customer affordability. At the beginning of last year, we set an ambitious goal to hold O and M expenses flat given the importance of cost control and managing customer rate impacts.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

I'm proud to report that we've made significant strides in this area. Importantly, at Amber, Missouri, when excluding the one time NSR charge, all in O and M expenses were down $12,000,000 year over year. As we navigate the current economic landscape, we expect our proactive cost management and strategic investments will continue to drive operational efficiencies and keep our customer rates below the national and Midwest averages. Moving to Page 21 to cover regulatory progress made in the fourth quarter. In December, the Missouri PSC staff recommended a $398,000,000 annual revenue increase in our 2024 Ameren Missouri electric rate review.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

The difference between our request of $446,000,000 and staff's recommendation is primarily driven by staff's proposed return on equity of 9.74% versus our request of 10.25% and treatment of High Prairie Energy Center, partially offset by estimated off system sales and fuel costs, which will be subject to true up and regulatory recovery mechanisms. The equity ratio will be updated to use the capital structure as of 12/31/2024. Sir, rebuttal and trip of direct testimony will be available later today. As we have in the past, we will seek to work through these and other differences with intervenors over the coming weeks. Evidentiary hearings are scheduled to begin in mid March and the decision for the Missouri PSE is expected by May with new rates effective by June 1.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Turning to Page 22 for an update on our regulatory proceedings in Illinois. In December, the Illinois Commerce Commission or ICC issued orders in two of our pending Illinois rate reviews. The ICC approved our revised grid plan and the corresponding multi year rate plan or MYRP for 2024 through 2027 for a cumulative revenue increase of $3.00 $9,000,000 versus our request for an increase of three thirty two million dollars These annual revenues reflect our recoverable costs, average rate base of $4,800,000,000 by 2027 and as anticipated, no change in the 8.72% return on equity. Investments in the energy grid under this multi year plan is expected to preserve safety, reliability and the day to day operations of our system, while also making progress towards the clean energy transition. We're pleased to have an ICC approved grid plan through 2027, which provides clarity on the work ahead.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

In addition, the ICC approved our request for $158,000,000 reconciliation adjustment in the final electric distribution reconciliation of twenty twenty three's revenue requirement. The full amount will be collected from customers in 2025, replacing the prior reconciliation adjustment of $110,000,000 that was collected during 2024. New rates from the 2023 reconciliation and 2024 through 2027 MYRP were affected at the end of last year. Moving now to Page 23 for an update on the Illinois gas regulatory matters. In January, Ameren Illinois Natural Gas Distribution requested a $140,000,000 annual base rate increase based on a 10.7% return on equity, a 52% equity ratio and a $3,300,000,000 average rate base during our future 2026 test year.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

An ICC decision is required by early December with rates expected to be effective in December 2025. Turning to Page 24, we look ahead to our company wide capital plan for the next five years. Here we provide an overview of our $26,300,000,000 of planned capital expenditures for 2025 through 2029 by business segment, which support our consolidated 9.2% compound annual rate based growth expectations. As Marty highlighted, we have a robust capital investment opportunities ahead of us. The five year infrastructure investment plan we are releasing today represents a 20% increase over our investment plan issued last year.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

This increase includes additional generation reflected in Ameren Missouri Smart Energy Plan, including the new preferred resource plan and the Ameren Illinois MYRP order. As you can see on the right side of this page, we are continuing to allocate capital consistent with the allowed return on equity under each regulatory framework. Page 32 in the appendix of this presentation provides a summary of the Ameren Missouri Smart Energy Plan now filed with the Missouri POC, which outlines CapEx by year over the next five years. Turning to Page 25. Here we outline the expected funding sources for the investments noted on the prior page.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

We expect continued growth in cash from operations as investments are reflected in customer rates. From a tax perspective, we expect to generate significant tax deferrals driven primarily by the timing differences between financial statements depreciation reflected in customer rates and accelerated depreciation for tax purposes. We will continue to advocate along with others in our industry to retain clean energy tax credits for the benefit of our customers. From a financing perspective, we expect to continue to issue long term debt to fund a portion of our cash requirements. To maintain a strong balance sheet while we fund our robust investment plan, we expect to issue approximately $600,000,000 of equity each year from 2025 through 2029, a portion of which we expect to be issued through our dividend and reinvestment and employee benefit plans.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

These actions are expected to maintain our strong balance sheet and credit ratings. Turning to Page 26 for further details on our 2025 financing plan. To fund a portion of the $4,200,000,000 of investment in 2025, we expect debt issuances totaling $500,000,000 6 50 million dollars and $750,000,000 at Ameren Missouri, Ameren Illinois and Ameren Parent respectively. In addition, as of today, we've entered into forward sales agreements for $265,000,000 of common stock issuances under our at the market equity distribution program to address a portion of our 2025 equity needs. We expect to settle these by the end of the year.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Moving to Page 27 of our presentation for our 2025 earnings guidance. Today, we are affirming our 2025 diluted earnings per share guidance range of $4.85 per share to $5.05 per share, the midpoint of which represents approximately 7% growth compared to our 2024 adjusted earnings results. These earnings drivers are summarized on this page and remain largely consistent with those discussed in our third quarter earnings call. We expect our disciplined cost management to hold operations and maintenance expenses to around a 1% compound annual growth rate over the five year plan. Finally, turning to Page 28.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

We remain confident and excited in our long term strategy, which we expect will continue to drive consistent superior value for all of our stakeholders. We have strong investment opportunities to benefit our customers and attract and support new business. We expect strong earnings per share growth driven by robust rate base growth, disciplined cost management and a strong customer growth pipeline. As we said before, we have the right strategy, the right team and the right culture to capitalize on opportunities to create value for our customers and shareholders. We believe this growth will compare favorably with the growth of our peers.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Further, Ameren shares continue to offer investors an attractive dividend. In total, we have an attractive total shareholder return story. That concludes our prepared remarks. We now invite your questions.

[Operator]

Our first question comes from Shar Pourreza with Guggenheim Partners. Please proceed with your question.

[Shar Pourreza, Senior Managing Director at Guggenheim Partners]

Hey guys, good morning.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Good morning, Shar.

[Shar Pourreza, Senior Managing Director at Guggenheim Partners]

Good morning, Marty.

[Shar Pourreza, Senior Managing Director at Guggenheim Partners]

Maybe just Marty,

[Shar Pourreza, Senior Managing Director at Guggenheim Partners]

if you can dig into the growth profile a little more. So you're now just over 9% rate base CAGR, you've got this new sales number with one gig by '29, equities largely the same. Can you speak to how close you are to the top end of 6% to 8% at this point? Are we another 29% hyperscaler deal away from piercing 8%? Thanks.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Yes, Shar, hey, thanks. You've got some of the building blocks that we laid out for you today. I'm pretty excited about the sales growth that we outlined on Slide 11. Very much excited about the capital plan that we laid out on Slide 24 and it's backed up by the new IRP changes that we've put forward that are on Slide 12. So a lot of good building blocks and like you said, we've provided financing assumptions as well.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

So hopefully, we've given you and everybody else some good building blocks to build out your models. I guess I'd say with respect to the EPS growth, we've said before that our goal is to deliver at or above the midpoint. And we really mean that year in and year out as we look ahead over the next five years. As we pointed out earlier, we certainly do have a history of doing that as well, really delivering within the upper end of that guidance range. As we look out over the next five years and you kind of talked about this a little bit, we see that sales growth sort of occurring over time, really starting in late twenty twenty six and into 2027, you see on that chart on Slide eleven, five hundred megawatts expected by the end of twenty twenty seven.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

And as you point out, a gig of additional demand by the end of twenty twenty nine. So it sort of ramps up in the mid to late parts of this period. Similarly with rate based growth, we certainly don't give that to you year by year, but as you look at that Slide 12 that I referenced with the updated IRP, you can see where some of the investments are going to come into service in order to serve that load. And again, it's mid to back end loaded over this five year period. So look, I think those are some of the building blocks and there's certainly a number of steps that need to take place to bring all these sales growth expectations to fruition and get this generation built.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

But based on the plans we've laid out today, we would expect to deliver near the upper end of the range in the mid to latter part of the plan.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Hey, Sharpen. That was well said. The only thing I might add to that too is I think it's sort of implied with what Marty is saying. If you look at that long term capital plan too, we were at $55 plus billion out there over the next ten years. Obviously, we updated that with this preferred resource plan that was just filed this morning and updated that to $63 plus billion.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

So again, I think it just speaks to the longevity of the pipeline and the plan.

[Shar Pourreza, Senior Managing Director at Guggenheim Partners]

No, that's very well stated. And then on just the resource plan update, can you just help us sensitize a little more on the scenarios? The preferred plan is 1.5 gigs by 02/1932, so that's our baseline. But how much of capacity headroom is there in the resource mix if you wind up going beyond that? Are we looking at more generation capital or to be backfilled with retirement extensions, repowerings, etcetera?

[Shar Pourreza, Senior Managing Director at Guggenheim Partners]

Thanks guys.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Yes. As you look

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

at the IRP update that we filed today, in a lot of ways that reflects what in the short term in the next five years we think can realistically get done. And what you see there is mostly acceleration of things that we had in our prior plan. And we talked about this before, the acceleration of renewable investments, battery storage, investment in gas fired generation. And again, when we look at that opportunity that we have to build that generation out, we believe that we could serve that two gigawatts that we have outlined on Slide 11 by 02/1932 and even more thereafter. So we're really excited today to have the almost 1.8 gigawatts of construction agreements in place today.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Last quarter, we provided sort of a sales funnel, if you will, that talked about tens of thousands of megawatts of potential new demand across Missouri and Illinois. That's all still true today. We're excited about that. As we outlined in our plans today that again in the IRP, we believe we can serve the load that's been signed up for the construction agreements. We're also continuing to engage with potential developers of data centers in Missouri and Illinois.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

And we're going to continue to court that interest. Like I said, having the opportunity to serve more even with these plans that we've laid out today. So I think it's all good. I'm on Illinois. I just mentioned that while while it's not stated in the slides here, we have several projects in the engineering review stage in Illinois.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

There are some attractive development sites there just like there are in Missouri and some good state incentives. So we're doing all we can in each state to help businesses connect to the grid and grow the communities, the economies that we serve.

[Shar Pourreza, Senior Managing Director at Guggenheim Partners]

Perfect. Lots of tailwinds. Congrats guys. Appreciate it. Fantastic.

[Shar Pourreza, Senior Managing Director at Guggenheim Partners]

Thanks.

[Operator]

Our next question comes from Dinesh Chopra with Evercore. Please proceed with your question.

[Durgesh Chopra, Analyst at Evercore]

Hey, team. Good morning. Happy Valentine's Day.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

All right. Same to you, Dinesh. Good to hear from you.

[Durgesh Chopra, Analyst at Evercore]

Good. Thank you.

[Durgesh Chopra, Analyst at Evercore]

Well, a quick shout out to your IR team. The IRP reconciliation is crisp as always and makes my job a lot easier. Listen, two questions. First, on the balance sheet, just might hush the capital line is about 20% higher, the equity is the same. Maybe just what are you tracking on FFO to debt?

[Durgesh Chopra, Analyst at Evercore]

And are you positioned strongly enough with this capital plan to be at Baa1 or are we thinking about Baa2? Just start there.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Hey, yes. Good morning. You're making Andrew smile over here, by the way, in Durgesh. And I shied out to him. So he's happy to hear that.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Hey, look, as we've talked

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

in the past, we feel good about our balance sheet. We've been very proactive over time issuing equity. I think we've continued to protect and support the balance sheet in a really conservative way. As I sit here today and looking out over the five year plan, we absolutely feel that this equity here will support the BAA1, BBB plus I mean, we're at or above that 17% threshold that Moody's has us at. And that's really obviously the downgrade threshold that we have for us.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Just to remind you, F and P, we're at 13%. So we're probably closer to the upgrade threshold than we are the downgrade threshold given where we maintain the metrics. But again, as we sit here today and what we have from a funding perspective, we feel very, very good about it.

[Durgesh Chopra, Analyst at Evercore]

Got it. Okay. Excellent. And then maybe just a lot of upside investment opportunities on the MISO side, on the IRP. Maybe can you just help reconcile what is in the five year plan?

[Durgesh Chopra, Analyst at Evercore]

And then what are the quantum of opportunities, if there's a way to size the capital amount which is truly upside and not yet in the capital plan if you know where I'm going with this?

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Yes, let me start with the transmission piece and Marty can certainly chime in here as well. I mean, I think probably the easiest way for guests to think about it is we had about $5,000,000,000 in the overall ten year pipeline associated with LRTP. And so about $2,000,000,000 of that was in this first five years, which has been allocated to us as part of those, that first tranche one plus those competitive projects that we won. So that's that first piece. And then you got a remaining $3,000,000,000 that you're filling out and that has been $1,300,000,000 awarded to us here in Tranche two.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

And so then we obviously have these competitive projects that we indicate about $6,500,000,000 worth of projects that we're going to bid on to fill out that piece. So I think the way to think about it, there is clearly upside with respect to some of those competitive projects today and how we think about that $5,000,000,000 that's in there. So Marty, anything to add on the transmission side?

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

On the transmission side, I would just say overall as we think about the capital plan, we feel like it's conservative and achievable. As you look at the other elements of the capital plan on Slide 24, in Missouri, what we've done is look to align the generation spending there with the updated IRP we filed today, the Illinois Electric Distributions aligned with the The Illinois gas spending is aligned with our 2023 gas rate review as well as the pending gas rate review and Michael just discussed transmission. So we've aligned all those things. I would note that our Ameren Missouri non generation spending is down a little bit from what we had in our last five year plan. And I would say that overall, despite the increase in spending that you're seeing and investments you're seeing in Missouri, there's conservatism baked into those numbers as we think about the five year plan.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

So I think it's conservative, it's achievable, but it is aligned with those things Michael and I talked about.

[Durgesh Chopra, Analyst at Evercore]

Excellent. Appreciate the discussion there. Thank you.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Take care.

[Operator]

Our next question comes from Nicholas Campanella with Barclays. Please proceed with your question.

[Nicholas Campanella, Director at Barclays]

Hey, good morning. Thanks for all the updates and taking my questions today.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

You bet.

[Nicholas Campanella, Director at Barclays]

Hey, so I just when I look across the portfolio, there's just a lot of tailwinds, whether it's Missouri rate review seems like it's going off to a solid start. And I know that there's legislation this year, you're kind of laying the framework for potentially more data centers to come into your territories. And if you were to have success here, let's just say you kind of move into the high scenario, load growth range, or you do have to kind of accelerate capital in the plan, is there a point in which you would kind of evaluate like reevaluate the growth rate or do these opportunities kind of extend that premium 6% to 8% offering at the

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Yes. Well, thanks for the question. And you're right, there are a number of tailwinds that we've got today. I mean, we're very excited for our communities and for our customers as we think about some of the economic development opportunities that we're seeing in Missouri and Illinois. And as you mentioned for us, it certainly means opportunities to invest to support those businesses, to help grow those businesses and impact our sales.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

And we are pleased that in Missouri in particular, there's good alignment, I believe, with stakeholders to really go after some of these economic development opportunities and provide some of the regulatory tools and mechanisms and outcomes to be able to support the continued investment and growth in our community. So I think that's all good. As you think about our growth rate over time, certainly our objective is going to be to maximize that growth rate As we think about the investments that are needed through time, we're not going to constrain it is another way to put it. An answer I think to the first question we got though, as we think about the next five years, still feel like this 6% to 8% growth guidance is the right guidance. Again, as I said earlier, in the short term, we'll be at or above that midpoint.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

But as we see that load growth occurring later in the five year period, as we see the rate base growing later in that five year period. As I said before, we do expect to deliver near the upper end of the range in the mid to latter part of the plan. As we go through time, as some of these tailwinds continue and should the growth even accelerate further, we'll certainly reevaluate the overall earnings per share growth range. As I said, we certainly don't want to constrain it in any way.

[Nicholas Campanella, Director at Barclays]

That's super helpful. I appreciate that. And I'm sorry to make you repeat yourself a little bit on what's in the plan versus not, but just you mentioned that you have capacity to serve two gigawatts of demand or you're working towards capacity to serve two gigawatts of demand by 02/1932. It does seem you have like 1.8 under construction. So I just is what you're doing freeing up additional capacity to attract an additional two gigs?

[Nicholas Campanella, Director at Barclays]

So if you were to have an additional demand, you'd have to do more CapEx for that or does this kind of does this plan and this CapEx plan create that capacity for you? I just wanted to understand that.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Yes. Thanks for the question. I'll try to clarify. As we look at some of this load, it ramps up over time. And so even when we think about that 1.8 gig, it's going to ramp up over some period of time based upon the customer's needs.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

And so the plan that we laid out today, the resource plan that we laid out, as I said, we think that would support the ability to serve a full two gigawatts by 02/1932, but even more after that. And so as that load grows, we can not only serve that two gigs by 02/1932, but even more so after that. And look, if there's more demand, we'll continue to explore ways to serve even beyond that. So again, we're not constraining ourselves. But as we look at this next five years, with the investments we've outlined are the things that we do believe we can realistically achieve and support that load growth that I just talked about.

[Nicholas Campanella, Director at Barclays]

All right. Thank you very much.

[Operator]

Our next question comes from Carly Davenport with Goldman Sachs. Please proceed with your question.

[Carly Davenport, Analyst at Goldman Sachs]

Hey, good morning. Thanks so much for taking the questions. Maybe just two quick ones for me. First on the sales growth outlook, can you just help us put that 5.5% CAGR into the context of sort of the total pipeline that you're seeing in Missouri? Or maybe said another way, can you just talk about how you sort of risk the pipeline to come out to this 5.5% level over the course of the new five year plan?

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Yes, I'll see what color I can provide on that. When you look back on the Q3 call in that funnel, we talked about tens of thousands of megawatts of potential demand, 75% of that from data centers and about 65% of that Missouri. So significant demand, but what's happened through time is we work with different developers in terms of transmission access. And as I said earlier, about 1.5 gigs of new construction agreements have been signed on top of the ones that we had when we talked last in Q4. So, and we've really been trying to take those in terms of in a fair and equitable way in terms of the orders that they came in and have asked for interconnection.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

And that's where we are today. Now to put it all in sort of scale terms, I mean two gigs, if we're serving two gigs by the end of two thousand and thirty two, that represents about a 45% increase in Missouri sales. So pretty significant. But as I said earlier, Carly, this is what we've got today given the construction agreements that we've got signed, given the tariff discussions we have going on with end users and we look at the again the generation that we can accelerate and deliver within this time period, we think a gig and a half is a good point estimate, but again, could be greater as we think about the sales by 02/1932.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

And Carly, it's Michael, just a little finer point. I mean, I think the comments that we have made previously about this first two fifty megawatts, I think it still stands. We talked about that being online by the end of twenty twenty six. And then as Marty said, it kind of ramps in over time, 500 by the end of twenty twenty seven and then you get to the gig by the end of twenty twenty nine.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

And the only thing I

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

might add in addition to this, I mean, I think we're coming off of a good foundation as well, right? As I indicated in my talking points, we ended the year at just a little bit right at about 2% growth. And it was across all classes, 2% on the residential side, 1.5% on the commercial, and then a really robust 3% on the industrial side. And we're forecasting additional growth in 2025 relative to 2024 as well. So I mean, I think again, it gives us good backdrop just what we're talking about here in terms of the foundation.

[Carly Davenport, Analyst at Goldman Sachs]

Great. Appreciate all that color. That's really helpful. And then maybe just on the updated IRP in Missouri. I know you mentioned this in your opening remarks, but you did have some new nuclear longer dated, of course, by 02/1940 reflected in that new filing.

[Carly Davenport, Analyst at Goldman Sachs]

Obviously, it's a big focus of the market. So could you just talk a little bit about kind of how you envision that new capacity? Is that more focused on opportunities around SMRs or something more like an AP1000?

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Yes. Thanks, Carly. And you're right, it's long dated. When we look out to 02/1940 timeframe, looking at adding new nuclear and we talked about that balanced energy portfolio we see in the future. And when you look out to say a 02/1945, what we see is about 70% dispatchable resources with nearly 40% nuclear, a little over 30% gas and then about 30% of our energy coming from renewable.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

So that's what we're sort of looking towards when we look very long term. And of course, we've got experience with nuclear. Our Callaway plant here in Missouri has served our customers well for the past forty years and we expect it to continue for the next forty years. That said, I'd say as we sit here today, we really haven't put a stake in the ground in terms of what technology would make the most sense for us in terms of a nuclear technology. Certainly, when you look at the megawatts that we have in there for new nuclear about 1,500, you've got a full range of options as you mentioned in terms of technology.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

But what we're really looking to do over the next three or five years is to devote resources internally to monitoring and studying these technologies closely and exploring perhaps what activities might be prudent to take that would say be technology agnostic, which might include things like construction permitting and the like. I don't see in the next few years any material financial commitment as it relates to new nuclear. As you say, it's sort of long dated. But we do think that's part of our energy future as we look out to a balanced portfolio in Missouri.

[Carly Davenport, Analyst at Goldman Sachs]

Great. Thanks so much for the answers. Appreciate the time.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

You bet.

[Operator]

Our next question comes from Julien Dumoulin Smith with Jefferies. Please proceed with your question.

[Julien Dumoulin-Smith, Research Analyst at Jefferies Financial Group]

Hey, good morning team. How are you guys doing?

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Great Julien. How about you?

[Julien Dumoulin-Smith, Research Analyst at Jefferies Financial Group]

Hey, great. Happy Friday. With that said, you guys I mean, just a remarkable update here across the board whether it's the minimal, limited incremental equity, great role for the rate base here. I mean, really what's left to address on the call here is as you think about regulatory lag in front of you in this investment cycle, can you speak to that a little bit here and what you're facing if that there's any kind of timing issues? Obviously, you're emphasizing being at the upper end of the plan in the back half of the years.

[Julien Dumoulin-Smith, Research Analyst at Jefferies Financial Group]

Can you speak to maybe any kind of earned ROE expectations and maybe marry that up against expectations and how to frame and sensitize, any potential legislative outcomes here? Obviously, you spoke to some of them in brief earlier, but maybe just kind of square that up, if you will, and set any expectations on the cadence of earnings

[Julien Dumoulin-Smith, Research Analyst at Jefferies Financial Group]

to the five year period too.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Let me start on the regulatory lag and then Marty can come in and talk about the legislative process. I mean, Julianne, as you know, I mean, we've always managed these businesses prudently, tried to earn as close to our out louds as possible. I mean, if you kind of look at where we are on a historical basis versus someplace in excess of 10% kind of across the overall portfolio of different returns. Yeah.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

And as you said, I mean, we got to continue to be thoughtful about this. Obviously, you have rate reviews and other things you got to be thoughtful about from a timing perspective. And so that goes into how we think about projects. And Mark Berg and his team do a really good job just thinking about when those are gonna need to be in place from a cutoff date, etcetera, just again to make sure that we're maximizing the returns and minimizing any regulatory lag. And then the other thing that we've obviously done in addition to all of this, which I think is just a good practice in general is we've managed our overall O and M costs really, really well.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

We talked about this at the beginning of the year. I mean, we went through another process of kind of looking at fans and layers, doing a lot of benchmarking, looking up and down the P and L. We've made significant investments in technology over the past five, six years. We're continuing to start to see some of that benefit from a productivity standpoint today, both back office and in the field, which I think is helpful, being very thoughtful about as we turn and have turnover and the replacements we put back into the business, etcetera. So I think all of that has served us well.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

And it obviously manifested itself and having O and M be down $12,000,000 which I indicated in the talking points year over year, which I think is good in this environment because we want to be doing everything we possibly can to try to minimize the impact of this transition. So that's what I would say about that from a regulatory lag perspective. Marty can certainly add in and talk about the legislative piece too.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Yes, I thought that was good, Michael. I think, Julie, as you get through time, we'll have to adjust and think through the timing of our rate reviews, as Michael mentioned, for a variety of factors. And again, some of it is going to be really getting better visibility in terms of how some of the sales growth is going to occur through time and refined timing on some of the, I'll call it, chunkier in service dates on some of the elements of our integrated resource plan. And those things will help to refine our regulatory timing as well as thoughts on regulatory lag. But you did mention legislation in Missouri.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

There are a number of legislative initiatives that are progressing. As you know, the legislative session just recently kicked off and goes through, I think, May sixteen of this year. So quite a bit of time, but we outlined on Slide 15 a

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

number of various pieces of legislation

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

that are sort of percolating and some of them are familiar to things we've talked about in the past like really extension of PISA. As you think about some of these generation investments we want to make, getting that sunset pushed out in time is really helpful to us, gives us greater visibility in terms of regulatory framework and certainty through time, extending that to include natural gas generation. Again, we've got that built into our plan. These things are important in terms of supporting this economic development, this investment in generation. You see other things like the Missouri First Transmission Act really making sure that we can get transmission built quickly, have good import export capability in our region, again supports this economic growth.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

And then you see some of the other things that are percolating, changes to the integrated resource planning, allowing equip in rate base for new natural gas generation or other energy centers that you see forward test years for natural gas and water. So I think some good constructive things that would be again incrementally supportive of investment in the state and incrementally supportive of broader economic growth and development in the state. And so the active consideration on these, it's a long way to go, but we have recently seen some Senate action on that in particular. So a consolidation of a number of these bills into one bill with Senate Bill four. So I'd encourage you to continue to monitor these.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

We'll certainly continue as well as others to actively engage. But I think some just good constructive discussion about things that would be supportive of investment and economic growth in our state. So thanks.

[Julien Dumoulin-Smith, Research Analyst at Jefferies Financial Group]

Excellent guys, best of luck. It's a real pleasure to see us coming together.

[Julien Dumoulin-Smith, Research Analyst at Jefferies Financial Group]

All right, you guys take care.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

You too, Julien. See you soon.

[Operator]

Our next question comes from Anthony Kraudel with Mizuho. Please proceed with your question.

[Anthony Crowdell, Managing Director at Mizuho Financial Group]

Hey, good morning guys. Thanks for the update. Hopefully just two quick questions. One is I think on Slide 31 where you know, kudos to Andrew again. You do a great job of breaking it out.

[Anthony Crowdell, Managing Director at Mizuho Financial Group]

Just wondering, 02/1930, you have 1,600 megawatts of gas, 800 more than your original plan. We hear or see in the papers the challenges of procuring new gas fired generation. Just anything you could add on the ability to add that generation? I have one follow-up.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Yes. Hey, no, this is Michael. Look, we feel good about that addition. I mean, we've taken steps along the way, and it's ready to make sure that we could procure what we needed to get this online, given the importance of it, given the significance of what we're seeing from a supply chain perspective. So I think we've mentioned this before, but I think those steps have served us well and we should be in good shape to bring this online.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Still a lot of work to do, but from a critical component standpoint, we're set.

[Anthony Crowdell, Managing Director at Mizuho Financial Group]

And great. And then on the S and P rating, just if you could just give me the numbers, I missed it to the earlier question on I think you said you're closer to the upgrade thresholds. Would you mind just those numbers again?

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Yes. Our downgrade threshold at S and P is 13%. So we've been certainly north of 17% or above there on that calculation. And so I don't know exactly what the upgrade threshold is, but it's much closer to that than we are the downgrade threshold. That's the point I guess I was trying to make.

[Anthony Crowdell, Managing Director at Mizuho Financial Group]

Great. Thanks so much for taking the question and congrats on a great update.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Thanks, Anthony.

[Operator]

Our next question comes from Bill Aparcelis with UBS. Please proceed with your question.

[Bill Appicelli, Executive Director, Head of North America Power & Utilities Research at UBS Group]

Hi, good morning. Hey, Bill. Question on the large load tariff that you're going to be filing. Can you just share some details around that? I mean, is that going to have minimum load commitments for a set period of time?

[Bill Appicelli, Executive Director, Head of North America Power & Utilities Research at UBS Group]

Is there an expectation that this is new load that's going to be have a neutral impact or potentially a beneficial impact to existing customers? Any color you can share on that filing?

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Yes, Bill. I'd say it's premature to say exactly how it's going to be structured, but you're hitting on the right points. We're actively working with some of the prospective customers to finalize the tariff. I'd say discussions are going well, but you're right. I mean, typical contract items, things like revenues to cover cost to the cost to serve, tenure of contract, minimum takes, exit provisions, credit provisions.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

I mean, these are the things that we're focused on.

[Bill Appicelli, Executive Director, Head of North America Power & Utilities Research at UBS Group]

Okay. But I mean but the point would be that existing customers would be held would be neutral to the large load coming on?

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

At a minimum, yes.

[Bill Appicelli, Executive Director, Head of North America Power & Utilities Research at UBS Group]

Yes. Okay. And then just on the Missouri rate case, I think there's a settlement window coming up next week. I know you've got hearings, I said for March, but any update on how you're feeling around maybe the possibility of settling the rate case in this upcoming window?

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

Bill, this is Michael. Again, I think as I indicated on the call, so I think we sit in a good spot at this point in terms of the differences between us versus staff. I think we indicated we're in the last update we were at 4.46 versus 3.98 from staff. And so most of that is being driven by ROE. They're at 9.74 and we're at 10.25.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

And then there's an issue associated with this High Prairie wind place. So I think ultimately we always look to try to find a constructive way to get these settled. You can never guarantee that, but I think we sit in a good spot to continue to have some constructive conversations here over the coming weeks and we'll see what time brings us.

[Bill Appicelli, Executive Director, Head of North America Power & Utilities Research at UBS Group]

All right, great. Thanks very much.

[Operator]

Our next question comes from Jeremy Tonet with JPMorgan Chase. Please proceed with your question.

[Jeremy Tonet, Equity Research Analyst, Executive Director at JP Morgan]

Hi, good morning and a very happy Valentine's Day to all.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Same to you. Michael's got his pink shirt on today. He's ready to go.

[Jeremy Tonet, Equity Research Analyst, Executive Director at JP Morgan]

Great to see. Great to see. I

[Jeremy Tonet, Equity Research Analyst, Executive Director at JP Morgan]

was just wondering, if I could go to the financing plan a little bit, the $4,400,000,000 of increase in CapEx, yet only $300,000,000 of incremental equity. You haven't seen that from all your peers out there. Just wondering if you could talk a bit more about the specific drivers here that allow you to minimize additional equity issuance here. Is there any shaping of CapEx over the five year plan and how that impacts financing considerations?

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

No, Jay. I mean, look, I think it's more of a product just of how we've managed this over time, right? We came into this kind of super cycle of CapEx in a really strong position. We've always protected the balance sheet. Again, we've liked our ratings where they have been historically.

[Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services at Ameren]

And so I think it's really probably the difference here as we just as we worked into it, we had some continued room. If you went back and looked over time, we were certainly in excess of even those downgrade thresholds of where we are today. But as we look over the next five years, as I mentioned earlier, feel good that we're going to be at or above that 17%, which is really the threshold metric for us on the Moody side.

[Jeremy Tonet, Equity Research Analyst, Executive Director at JP Morgan]

Got it. Great to see what being conservative on the balance sheet can do for you. It makes sense. And maybe just one last one if I could circling back to legislation. Do these items represent upside to your plan anyway to size the magnitude of earnings and cash flow benefits from possible legislation here?

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Yes, I think these are really things that can create a win win for customers and shareholders as we think about executing the capital plans that we've got. And I think in large respect, go a long way simply to helping us turn closer to our allowed return as we deploy the capital.

[Jeremy Tonet, Equity Research Analyst, Executive Director at JP Morgan]

Got it. Great. Thank you for that. See you next month in Denver.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

You bet.

[Operator]

Our next question comes from David Paz with Wolfe Research. Please proceed with your question.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

Good morning, David.

[David Paz, Senior Vice President at Wolfe Research]

Good morning. Sorry, I think my question has mostly been answered, but maybe just a little more precise question here. I know you said that you expect to be within the 6% to 8% EPS growth target each year and then the upper end in the latter half of the planning period. But do you see any specific headwinds that put you below the midpoint, say, next year in 2026 before that sales growth kicks in? And if so, what are those?

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

No, David, I wouldn't say there are any specific headwinds with respect to being at the midpoint or higher as we look at next year. But again, I think the point I was trying to make is when you look at some of that sales growth again and Michael, I think, underscored this, we really see that ramping up late twenty twenty six into 2027 and then beyond. And you can look at also to some of the rate base growth which occurs sort of again mid to latter part. But now I wasn't trying to suggest that next year we would be expecting to sort of miss that mark.

[David Paz, Senior Vice President at Wolfe Research]

Got it. Okay. Thank you.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

All right, David. Hey, I think we're going to have to wrap it up for today. We've got some other business we have to attend to this morning. Really appreciate all the interest we have on the call this morning. Lots of great questions and dialogue.

[Martin Lyons, President, CEO & Chairman of the Board at Ameren]

I think you can tell that we're very energized by the opportunities ahead, the power growth for our communities and for our shareholders. And so with that, please be safe and we look forward to seeing many of you at upcoming conferences.

[Operator]

This concludes today's conference. You may disconnect your lines at this time and we thank you for your participation.

Participants

Executives

• Andrew Kirk, Director, IR
• Martin Lyons, President, CEO & Chairman of the Board
• Michael Moehn, Executive VP, CFO, Ameren Corp., President, Ameren Services

Analysts

• Shar Pourreza, Senior Managing Director at Guggenheim Partners
• Durgesh Chopra, Analyst at Evercore
• Nicholas Campanella, Director at Barclays
• Carly Davenport, Analyst at Goldman Sachs
• Julien Dumoulin-Smith, Research Analyst at Jefferies Financial Group
• Anthony Crowdell, Managing Director at Mizuho Financial Group
• Bill Appicelli, Executive Director, Head of North America Power & Utilities Research at UBS Group
• Jeremy Tonet, Equity Research Analyst, Executive Director at JP Morgan
• David Paz, Senior Vice President at Wolfe Research