Company: AILIM
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001002910-25-000129
Chunk: 31

Company: Ameren Illinois Co
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 31
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25 %20 %21 %19 %Ameren Illinois Natural Gas25 %22 %26 %27 %Ameren Illinois Transmission2 %27 %17 %27 %Ameren Transmission(12)%27 %13 %27 %

(a)Estimate of the annual effective income tax rate adjusted to reflect the tax effect of items discrete to the three and nine months ended September 30, 2025 and 2024.

See Note 12 – Income Taxes under Part I, Item 1, of this report for a reconciliation of the federal statutory corporate income tax rate to the effective income tax rate for the Ameren Companies.

65

The effective tax rate was lower at Ameren Transmission and Ameren Illinois Transmission for the three and nine months ended September 30, 2025 compared with the year-ago periods due to a revaluation of excess deferred income tax regulatory liabilities in the third quarter of 2025. In 2024, the IRS issued a series of private letter rulings to another taxpayer, which provided guidance on applying IRS normalization rules to the calculation of tax benefits applicable to the ratemaking treatment related to net operating loss carryforwards. The rulings concluded that, for ratemaking purposes, net operating loss carryforwards should be reflected on a separate company basis and should not be reduced by payments received for the utilization of losses by other affiliates under a tax allocation agreement. In 2025, the FERC issued an order reflecting implementation of the rules for the other taxpayer who had a similar fact pattern as Ameren Illinois and ATXI. Accordingly, in the third quarter of 2025, Ameren and Ameren Illinois decreased income tax expense by $48 million and $23 million, respectively, to reflect the revaluation of excess deferred income tax regulatory liabilities resulting from TCJA for FERC-regulated jurisdictions pursuant to IRS guidance and recent FERC order.

LIQUIDITY AND CAPITAL RESOURCES

Collections from our utility tariff-based revenues are our principal source of cash provided by operating activities. A diversified retail customer mix, primarily consisting of rate-regulated residential, commercial, and industrial customers, provides us with a reasonably predictable source of cash. In addition to using cash provided by operating activities, we use available cash, drawings under committed credit agreements, commercial paper issuances, and/or, in the case of Ameren Missouri and Ameren Illinois, short-term affiliate borrowings to support normal operations and temporary capital requirements. We may reduce our