Company: AILIM
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001002910-25-000055
Chunk: 258

Company: Ameren Illinois Co
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 258
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 fuel and purchased power expenses increased $74 million, or 7%, in 2024, compared with 2023.

The following items increased Ameren Missouri’s fuel and purchased power expense in 2024, compared with 2023:

•Energy costs increased $95 million in 2024, compared with 2023, primarily due to higher summer and fall capacity prices, which were set by annual MISO auctions. Ameren Missouri’s 5% exposure to net energy cost variances under the FAC is the difference between “Off-system sales, capacity, transmission, and FAC revenues, net” and “Energy costs (excluding the estimated effect of weather)”. These results had an immaterial impact on earnings in 2024, compared with 2023.

•The effect of higher net energy costs included in base rates increased Ameren Missouri’s fuel and purchased power expenses $22 million in 2024, compared with 2023, as a result of the June 2023 MoPSC electric rate order.

•Transmission service charges increased $8 million due to higher transmission rates related to increased revenue requirements of other transmission operators.

•Increases in retail sales volumes increased Ameren Missouri’s fuel and purchased power expenses $6 million.

“Cost recovery mechanisms — offset in electric revenue” decreased $54 million in 2024, compared with 2023, due to decreased amortization of costs previously deferred under the FAC. The changes to “Cost recovery mechanisms - offset in electric revenue” are fully offset by “Cost recovery mechanisms - offset in fuel and purchased power” in electric revenues.

Ameren Illinois Electric Distribution

Ameren Illinois Electric Distribution’s purchased power expenses decreased $193 million, or 21%, in 2024, compared with 2023, primarily due to decreased energy prices (-$94 million), which largely reflect the results of IPA procurement events, decreased capacity prices (-$77 million), which were set by annual MISO auctions, and lower volumes (-$43 million) primarily due to residential and small commercial customers switching from Ameren Illinois’ supplied power to alternative retail electric suppliers and customer adoption of solar technology through initiatives required under Illinois law. These decreases in purchased power expenses were partially offset by increased expenses associated with the amortization of renewable energy credit costs (+$20 million). The changes to “Cost recovery mechanisms - offset in electric revenue” are fully offset by changes to “Cost recovery mechanisms - offset in fuel and purchased power” in electric revenues.

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