Q4 2023 Ameren Corporation Earnings Call

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It is now my pleasure to introduce your host Andrew Kirk Director of Investor Relations and corporate modeling for Ameren Corporation.

Mr. Kirk you may begin.

Thank you and good morning on the call with me today are Marty Lyons, our chairman, President and Chief Executive Officer, and Michael <unk>, Our senior Executive Vice President and Chief Financial Officer, as well as other members of the Ameren management team. This call contains time sensitive data that is accurate only as of the date of today's live broadcast and re.

Greetings and welcome to the Amarin Corporation's fourth quarter 2023 earnings call.

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A brief question and answer session will follow the formal presentation.

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As noted on page two of the presentation comments made during this conference call may contain statements about future expectations plans projections financial performance and similar matters, which are commonly referred to as 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.

It is now my pleasure to introduce your host Andrew Kirk Director of Investor Relations and corporate modeling for Ameren Corporation. Thank you Mr. Kirk you may begin.

Andrew Kirk: Thank you and good morning on the call with me today are Marty Lyons, our chairman, President and Chief Executive Officer, and Michael <unk>, Our senior Executive Vice President and Chief Financial Officer, as well as other members of the Ameren management team. This call contains time sensitive data that is accurate only as of the date of today's live broadcast and <unk>.

<unk> about the various factors that could cause actual results to differ materially from those anticipated now here's martie, who will start on page four.

Thanks, Andrew Good morning, everyone and thank you for joining us today, beginning on page four our strategic plan highlights our steadfast commitment to providing safe and reliable energy in a sustainable manner.

Redistribution of this broadcast is prohibited.

Andrew Kirk: We have posted a presentation on the ameren investors dot com homepage that will help that will be referenced by our speakers as noted on page two of the presentation comments made during this conference call may contain statements about future expectations plans projections financial performance and similar matters, which are commonly referred to as forward looking statements.

We do this by investing in rate regulated infrastructure, enhancing regulatory frameworks and advocating for responsible energy policies, while optimizing operating performance through ongoing continuous improvement in order to keep rates affordable.

Our strong 2023 operating and financial results, which we will cover today reflect execution on our key business objectives for the year, which will continue to create value for our customers communities shareholders and the environment in the years ahead.

Andrew Kirk: 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 martie, who will start on page four.

I'd like to express appreciation for my Ameren coworkers unwavering commitment to our strategy.

Martie: Thanks, Andrew Good morning, everyone and thank you for joining us today, beginning on page four our strategic plan highlights our steadfast commitment to providing safe and reliable energy in a sustainable manner.

Turning to page five.

This page summarizes our strong sustainability value proposition.

Our operations and investments in 2023 made the energy grid safer smarter cleaner more reliable and resilient supporting thousands of jobs in our local communities in Missouri, and Illinois, and driving a positive impact on the economies of each state.

Martie: We do this by investing in rate regulated infrastructure, enhancing regulatory frameworks and advocating for responsible energy policies, while optimizing operating performance through ongoing continuous improvement in order to keep rates affordable or.

Martie: Our strong 2023 operating and financial results, which we will cover today reflect execution on our key business objectives for the year, which will continue to create value for our customers communities shareholders and the environment in the years ahead.

And the process, we helped hundreds of local small and diverse businesses grow and we gave back to numerous charitable organizations to help our neighbors in need for.

For example, last year, almost 60% of our total <unk> spend was with suppliers and our Missouri, and Illinois communities, while 26% with local small and diverse suppliers, creating jobs and economic growth and contribute into thriving communities in the areas, where we operate.

Martie: I'd like to express appreciation for my Ameren coworkers unwavering commitment to our strategy.

Martie: Turning to page five.

Martie: This page summarizes our strong sustainability value proposition or.

The positive impact of our investments was reinforced by our top quartile reliability performance in 2023 as measured by the frequency of outages.

Martie: Our operations and investments in 2023 made the energy grid safer smarter cleaner more reliable and resilient supporting thousands of jobs in our local communities in Missouri, and Illinois, and driving a positive impact on the economies of each state.

At the same time, our ameren supplied residential customer rates on average were below the Midwest average.

And the process, we helped hundreds of local small and diverse businesses grow and we gave back to numerous charitable organizations to help our neighbors in need for.

Today, we published our updated sustainability investor presentation called leading the way to a sustainable energy future available at Ameren investors Dot com.

Martie: For example, last year almost 60% of our total sources will spend was less suppliers in our Missouri, and Illinois communities, while 26% was with local small and diverse suppliers, creating jobs and economic growth and contribute into thriving communities in the areas, where we operate.

I encourage you to take some time to read more about our strong sustainability value proposition.

Turning to page six.

When I reflect on the business objectives, we laid out at the start of 2023 I am pleased to say that we made some great strides in each of our three strategic pillars.

Martie: The positive impact of our investments was reinforced by our top quartile reliability performance in 2023 as measured by the frequency of outages.

That said, we did not achieve the results expected in our Illinois gas and electric regulatory proceedings.

On page seven we lay out our key strategic accomplishments for 2023 in more detail.

At the same time, our ameren supplied residential customer rates on average were below the Midwest average.

This past year, we invested $3 6 billion and infrastructure spread strategically across our business segments in order to improve service for our customers.

Martie: Day, we published our updated sustainability investor presentation called leading the way to a sustainable energy future available at Ameren investors dotcom.

These investments are needed to reduce the frequency and duration of outages in the face of a volatile weather events such as this past summer when we experienced the most impactful storms in the last 10 years.

Martie: I encourage you to take some time to read more about our strong sustainability value proposition.

Martie: Turning to page six.

Okay.

Kamran, Illinois work in restoring power to nearly 200000 customers in the wake of the June 29, 2023 ratio was recognized with an emergency response award by the Edison Electric Institute at its recent winter membership meeting.

And theres plenty more work to be done to address ageing infrastructure and make the grid stronger and smarter, while supporting the clean energy transition, making it truly an exciting time to be in the utility industry.

Martie: Okay.

Of course every utilities ability to invest must be supported by constructive regulation.

Which brings me back to our regulatory developments in the fourth quarter.

The state of Illinois has ambitious energy transition goals goals, which we continue to work collaboratively with stakeholders to support.

Of course, achieving these goals will require significant sustained investment in the state's energy infrastructure in the coming decades.

In 2023, Ameren, Illinois filed plans with the Illinois, Commerce Commission or ICC to incorporate proposed investments in critical electric and natural gas infrastructure into perspective rates and.

Unfortunately, the ICC decisions in both the electric and natural gas rate reviews late last year were disappointing.

Reducing cash flows available for investment and delay needed investments in energy infrastructure.

We will continue working with stakeholders on a path forward to approval of an electric grid investment plan revised revenue requirements, incorporating ongoing and prospective investments and an improved overall regulatory environment.

We must work to build a stronger understanding that consistent constructive regulatory environments are required to attract investment support energy infrastructure development economic expansion and jobs Michael.

Michael will cover the electric multiyear rate plan and the natural gas orders in more detail in a moment.

Moving to Ameren, Missouri.

In November Ameren, Missouri filed a petition with the Missouri PSC seeking approval to securitize, the unrecovered investment in and costs associated with the planned fall 2020 for retirement of a Rush Island Energy Center.

The securitization is expected to result in significant savings for our customers when compared with cost recovery under traditional ratemaking.

We of course recognize the importance of keeping our customers' bills as low as possible, while investing to improve service.

Which leads me to the third pillar of our strategy optimizing operating performance.

In 2023, our operations and maintenance expenses declined by 4% year over year.

We automated and streamlined many of our finance supply chain and customer service and workforce processes.

And we continue to drive new efficiencies in our field work through deployment of smart meters work management systems and distribution automation.

Notably, our Missouri customer rates have only increased one 8% compounded annually since the smart energy plan legislation took effect in April of 2017, with our Missouri residential customer rates consistently remaining 25% or more below the Midwest average.

For our shareholders yesterday, we announced 2023 earnings of $4 38 per share compared to earnings of $4 14 per share in 2022.

The result was above the midpoint of our original earnings per share guidance range of $4 35 per share.

On a weather normalized basis 2023 earnings results represent a 10% increase year over year.

Turning to page eight.

Here you can see we have delivered consistent superior value to our shareholders for the past decade.

Since 2013, our weather normalized core earnings per share have risen at an approximate seven 8% compound annual growth rate, while our annual dividends paid per share have increased approximately 58% over the same time period.

This drove a strong total return of 173% for our shareholders from 2013 to 2023, which was significantly above our utility peer average.

This track record of strong and consistent performance that gives me conviction regarding our business strategy and rest assured we are not looking back we are focused on the objectives ahead.

Moving to page nine we turned our focus to the current year.

We expect 2024 to be another busy year and has hit the ground running.

Notably we will maintain our focus on strategic infrastructure investment for the benefit of our customers, while working hard to reduce operating costs and improve the regulatory environments in which we operate.

We expect to invest approximately $4 $4 billion in electric natural gas and transmission infrastructure to bolster safety security reliability resiliency and further the clean energy transition in a responsible fashion.

This represents an increase of 22% from the prior year.

Our plan includes approximately $1 billion of investment in new generation. This year with new solar facility is expected to be in service by year end.

The investment plans are aligned with our regulatory outcomes and expectations associated with each of our business segments.

We also have several opportunities to enhance our regulatory and legislative environments in the year ahead.

Next week Ameren, Illinois will file what are you hearing testimony requesting to update 2024 through 2027 rates for 2023 year end rate base and the base level of grid reliability investments.

Then in March.

Ameren, Illinois will file its revised multiyear grid plan with the ICC to address the Commission's findings stated in their December order.

And updated rate plan will also be filed to incorporate revised investment plans concurrently.

Concurrently we are evaluating all appropriate options to better align prospective regulatory outcomes with the goal of making progress on our reliable clean energy transition and affordable fashion.

We will work with all impacted stakeholders to advocate for constructive regulatory frameworks across our Illinois businesses, which will better support the state's energy transition goals.

At Ameren, Missouri.

We look to obtain approval to securitize, the Russia Island Energy Center, and advocate for certificates of convenience and necessity or CCN.

For future renewable and dispatch will generation consistent with the integrated resource plan filed in September.

The plan calls for investment in new dispatch will energy resources, including an on demand 800 megawatt gas simple cycle energy center by 2027, which could be turned on as needed in a matter of minutes to ensure reliability of the energy grid during periods of peak energy demand.

In January we filed a request for the air permit for this simple cycle plant Castle Bluff Energy center to be located on the site of our retired Meramec Energy Center.

Utilizing this site will keep construction costs down bring back jobs and provide additional tax revenue for the surrounding region.

We expect to file for CCN approval with the Missouri PSC later this year.

We will also continue to support the analysis and approval of potential MISO tranche two transmission projects that will serve the needs of the Midwest region, improving the grids ability to integrate renewable resources efficiently and effectively.

Given the importance of dispatch will generation to reliability, we are advocating for improved Missouri regulatory treatment for generation investments akin to the treatment afforded other investments in electric infrastructure in the state.

Further on the Legislative front in both Missouri, and Illinois, we are advocating for right of first refusal right of first refusal legislation to support the timely construction of transmission resources needed for system reliability and efficiency and to maximize customer benefits.

Shifting our focus to operations.

As we identify ways to continuously improve our business, we're focused on maintaining disciplined cost management to hold operations and maintenance expenses flat in 2024 to 2023 levels.

Moving now to page 10.

Yesterday afternoon, we announced that we expect our 2020 for earnings to be in a range of $4 52.

To $4 72 per share.

Based on the midpoint of this range. This represents six 2% earnings per share growth compared to the midpoint of our original 2023 guidance range of $4 35 per share.

Mike will provide you with more details on our 2024 guidance a bit later.

We expect to deliver 6% to 8% compound annual earnings per share growth from 2024 through 2028, using the midpoint of our 2024 guidance $4 62 per share as the base.

At this time, we expect earnings growth to trend below the midpoint of our range until the outlook in Illinois improves or the impacts of other growth opportunities are realized.

That being said, we continue to have an outstanding portfolio of investment opportunities across our business segments totaling more than $55 billion over the next 10 years, and our strong balance sheet, which provide us potential earnings growth levers that warrant maintaining our guidance range with up to 8% growth.

Our dividend is another important element of our strong total shareholder return proposition.

Earlier this month Ameren board of directors approved a quarterly dividend increase of six 3%, resulting in an annual dividend rate of $2 68 per share.

This represents the 11th consecutive year that we've raised the dividend and reflects confidence by Ameren board of directors and our business outlook and management's ability to execute our strategy.

<unk> ahead, we expect ameren future dividend growth to be in line with our long term earnings per share growth expectations and within our payout ratio range of 55% to 65% we.

We expect our weather normalized dividend payout ratio in 2024 to be approximately 58%.

Over the last decade, we have gradually lowered our payout ratio, which provides financial flexibility, while executing a robust energy infrastructure investment plans.

Turning to page 11.

The strong long term earnings growth I. Just discussed is primarily the result of rate base growth driven by investment in energy infrastructure made strategically under constructive regulatory frameworks.

Today, we are rolling forward, our five year investment plan and as you can see we expect to grow our rate base and an eight 2% compound annual rate for 2023 through 2028.

This plan represents an increase of $2 2 billion compared to the $19 $7 billion five year plan for 2023 through 2027 that we laid out last February.

The plan includes investment in renewables and simple cycle gas generation consistent with Ameren Missouri's integrated resource plan.

And because of the Icc's orders late last year, our capital plan for Ameren, Illinois investments has been reduced by approximately $400 million from 2024 through 2027 compared to our prior five year plan.

We expect that this level of investment, which we expect will provide safe and adequate service as well as meet compliance requirements under the climate and equitable jobs Act will ultimately be approved by the ICC.

That said, we continue to believe that a higher level of investment supported by a more constructive return on capital investment would be in the best interest of our customers and communities and we will continue our advocacy.

Finally, we remain focused on keeping customer bills as low as possible and improving earned returns in all of our businesses.

Moving to page 12.

As we look to the future our five year plan is not only focused on delivering strong results through 2028, but.

But it is also designed to position Ameren for success over the next decade and beyond the right side of this page shows how our allocation of capital is expected to change over the next five years.

Corporate and generation investment opportunities from our latest AARP, we expect our 2028 rate base to reflect our diversified approach for maintaining reliability with renewable generation and dispatch of generation, representing 12% and 11% of rate base respectively.

Notably our coal fired generation is expected to be just 3% of rate base by the end of 2028.

The bottom line is that we are taking steps today across the board to position ameren to provide safe reliable affordable and cleaner energy for the long term.

Moving now to page 13.

Our investment plan released today incorporated our intentions to invest overtime insignificant renewable and dispatch will resources as laid out in our Ameren, Missouri ERP.

In 2023, we were pleased the Missouri PSC approved CCN for the Huck Finn and Boomtown solar projects.

We're maintaining reliability with renewable generation and dispatch will generation, representing 12% and 11% of rate base respectively.

And in doing so indicated support for a responsible gradual transition.

And I'm happy to announce that we reached a stipulation and agreement regarding our next four solar projects totaling 550 megawatts. These.

Notably our coal fired generation is expected to be just 3% of rate base by the end of 2028.

The bottom line is that we are taking steps today across the board to position ameren to provide safe reliable affordable and cleaner energy for the long term.

These projects will support our least cost plan for meeting customers energy needs as we systematically invest to create a diverse mix of generation resources that preserves reliability as we retire our existing coal fleet over the next 20 years.

Moving now to page 13.

Our investment plan released today incorporated our intentions to invest overtime insignificant renewable and dispatch will resources as laid out in our Ameren, Missouri ERP.

While the Missouri PSC is under no deadline to issue an order on these four projects <unk>, we expect a decision in March with these projects expected to go in service between 2024 and 2026.

In 2023, we were pleased the Missouri PSC approved CCN for the Huck Finn and Boomtown solar projects.

We expect to file additional ccm's consistent with the AARP later this year.

And in doing so indicated support for a responsible gradual transition.

Going to slide 14.

And I'm happy to announce that we reached a stipulation and agreement regarding our next four solar projects totaling 550 megawatts.

As we've discussed in the past MISO completed a study outlining a proposed roadmap of transmission projects through 2039.

These projects will support our least cost plan for meeting customers energy needs as we systematically invest to create a diverse mix of generation resources that preserves reliability as we retire our existing coal fleet over the next 20 years.

Detailed project planning design work and procurement for the tranche one projects assigned or awarded Ameren is underway and we expect construction to begin in 2026.

During 2023 Ameren was awarded the first two competitive tranche, one projects totaling approximately $100 million.

While the Missouri PSC is under no deadline to issue an order on these four projects Ccm's, we expect a decision in March with these projects expected to go in service between 2024 and 2026.

Ameren submitted the third and final tranche, one competitive bid in October and expects the project to be awarded by June 2024.

Andrew Kirk: We expect to file additional ccm's consistent with the AARP later this year.

When awarding the competitive projects to Ameren MISO noted our sound route design engineering and cost containment plan and innovative approach working with stakeholders as key factors in the winning bids this.

Moving to slide 14.

Andrew Kirk: As we've discussed in the past MISO completed a study outlining a proposed roadmap of transmission projects through 2039.

This is indicative of how we plan and develop all transmission projects, we believe our collaborative customer centric and community respectful approach to building and maintaining low cost projects is why we should be directly assigned these projects in the future in both Missouri and Illinois.

Andrew Kirk: Detailed project planning design work and procurement for the tranche one projects assigned or awarded the Ameren is underway and we expect construction to begin in 2026.

Andrew Kirk: During 2023 Ameren was awarded the first two competitive tranche, one projects totaling approximately $100 million.

MISO expects to approve a set of tranche two long range transmission projects in the first half of 2024.

Andrew Kirk: Ameren submitted the third and final tranche, one competitive bid in October and expect the project to be awarded by June 2024.

Which will again address Midwest region needs.

Turning now to page 15 looks.

Looking ahead over the next decade, we have a robust pipeline of investment opportunities of over $55 billion will deliver significant value to all of our stakeholders by making our energy grid stronger smarter and cleaner.

Andrew Kirk: When awarding the competitive projects to Ameren MISO noted our sound route design engineering and cost containment plan and innovative approach working with stakeholders as key factors in the winning bids.

Of course, our investment opportunities will also create thousands of jobs for our local economies.

Martie: This is indicative of how we plan and develop all transmission projects, we believe our collaborative customer centric and community respectful approach to building and maintaining low cost projects is why we should be directly assigned these projects in the future in both Missouri and Illinois.

Any constructive energy policies that support robust investment in energy infrastructure, and a transition to a cleaner future in a responsible fashion will be critical to meeting our country's energy needs and delivering on our customers' expectations.

Speaker Change: MISO expects to approve a set of tranche two long range transmission projects in the first half of 2024, which will again address Midwest region needs.

Moving to page 16.

Disciplined cost management and a focus on customer affordability is nothing new to us here at Ameren.

Turning now to page 15 looks.

And we expect 2024 to be another year of disciplined cost control and value realization from continuous improvement initiatives, which Mike will provide more details on in a few minutes.

Martie: Looking ahead over the next decade, we have a robust pipeline of investment opportunities of over $55 billion will deliver significant value to all of our stakeholders by making our energy grid stronger smarter and cleaner.

Through innovation and new efficiencies, we continue to target flat operations and maintenance expenses through 2028.

Martie: Of course, our investment opportunities will also create thousands of jobs for our local economies.

Moving to page 17.

Martie: Any constructive energy policies that support robust investment in energy infrastructure, and a transition to a cleaner future and our response will fashion will be critical to meeting our country's energy needs and delivering on our customers' expectations.

Some of our value proposition, we remain firmly convinced that the execution of our strategy into 2024 and beyond will continue to deliver superior value to our customers shareholders and the environment.

We believe our expectation of 6% to 8% compound annual earnings growth from 2024 through 2028.

Martie: Moving to page 16.

Martie: Disciplined cost management and a focus on customer affordability is nothing new to us here at Ameren.

Driven by strong rate base growth and supported by a strong balance sheet compares favorably with our regulated utility peers.

Martie: And we expect 2024 to be another year of disciplined cost control and value realization from continuous improvement initiatives, which Mike will provide more details on in a few minutes.

I am confident in our ability to execute our strategy and investment plans across all four of our business segments. As we have an experienced and dedicated team with a track record of execution.

Martie: Through innovation and new efficiencies, we continue to target flat operations and maintenance expenses through 2028.

Further our shares continue to offer investors, an attractive dividend and we are positioned well for future dividend growth.

Martie: Moving to page 17.

To sum up our value proposition, we remain firmly convinced that the execution of our strategy into 2024 and beyond we will continue to deliver superior value to our customers shareholders and the environment.

We put we believe this results in an attractive total return opportunity for shareholders again. Thank you all for joining us today and I will now turn the call over to Michael.

Martie: We believe our expectation of 6% to 8% compound annual earnings growth from 2024 through 2028 drew.

Thanks, Marty and good morning, everyone.

Turning now to page 19 of our presentation yesterday, we reported 2023 earnings of $4 38 per share.

Martie: Driven by strong rate base growth and supported by a strong balance sheet compares favorably with our regulated utility peers.

Fair to earnings of $4 14 per share in 2022, an increase of approximately 6%.

Martie: I am confident in our ability to execute our strategy and investment plans across all four of our business segments. As we have an experienced and dedicated team with a track record of execution.

This page summarizes key drivers impacting earnings in each segment, which are largely consistent with what we've reported throughout 2023.

Martie: Further our shares continue to offer investors, an attractive dividend and we are positioned well for future dividend growth.

As Marty noted when normalized for temperature temperature variations over the past two years, we estimate that our earnings grew 10%.

Martie: <unk> put we believe this results in an attractive total return opportunity for shareholders.

Moving to page 20, I'll cover a few key developments from the fourth quarter.

Martie: Again, thank you all for joining us today, and I will now turn the call over to Michael.

In November <unk> filed for securitization of cost associated with the Rush Island Energy Center as we approach. The plan retirement date of October 15 2024.

Michael: Thanks, Marty and good morning, everyone.

Michael: Turning now to page 19 of our presentation yesterday, we reported 2023 earnings of $4 38 per share.

If approved as requested Ameren, Missouri would be able to refinance and recover approximately $519 million, reflecting the remaining value of the plant and decommissioning costs.

Michael: Fair to earnings of $4 14 per share in 2022, an increase of approximately 6%.

Michael: This page summarizes key drivers impacting earnings in each segment, which are largely consistent with what we've reported throughout 2023.

Missouri PSC orders expected in June 2024.

To mitigate the impact of the loss rate base associated with a rush island that retirement, we expect our Huck Finn and boomtown solar facilities with an estimated total investment of approximately $650 million to be placed in service near the end of this year.

Michael: As Marty noted when normalized for temperature temperature variations over the past two years, we estimate that our earnings grew 10%.

Michael: Moving to page 20, I'll cover a few key developments from the fourth quarter.

Michael: In November Ameren, Missouri filed for securitization of cost associated with the Rush Island Energy Center as we approach. The plan retirement date of October <unk> 2024.

Turning to page 21.

As Marty mentioned late in 2023 Cc issued orders in our Ameren, Illinois, natural gas and electric rate reviews.

Michael: If approved as requested Ameren, Missouri would be able to refinance and recover approximately $519 million, reflecting the remaining value of the plant and decommissioning costs.

In November the ICC approved $112 million annual base rate increase for natural gas delivery service, which included $77 million that would've otherwise been recovered underwriters.

Missouri PSC order is expected in June 2024.

The order reflects a 2020 for future test year, a 944% allowed return on equity a 50% common equity layer and a rate base of $2 85 billion.

Michael: To mitigate the impact of the loss rate base associated with a rush island that retirement, we expect our Hudson and boomtown solar facilities with an estimated total investment of approximately $650 million to be placed in service near the end of this year.

New rates were effective in late November.

We filed for rehearing of the disorder with the ICC and were denied.

Michael: Turning to page 21.

So on January 3rd Ameren, Illinois appeal, the ICC decision to the Illinois Fifth District appellate court seeking the ICC modify the return on equity answer plant. This allowances among other things.

Michael: As Marty mentioned late in 2023.

Michael: <unk> issued orders in our Ameren, Illinois, natural gas and electric rate reviews.

In November the ICC approved $112 million annual base rate increase for natural gas delivery service, which included $77 million that would've otherwise been recovered underwriters.

The quarters under no deadline to address this appeal.

Turning to page 22 in December the ICC issued an order in our Ameren, Illinois electric multiyear rate and grid plan filings.

Michael: The order reflects a 2020 for future test year, a 944% allowed return on equity a 50% common equity layer and a rate base of $2 85 billion.

And what are the ICC establish an alternative revenue requirement based on our 22 2022 rate base and is requiring us to re file and provide additional justification for our grid plan.

Michael: New rates were effective in late November.

We're in the process of revising our grid point, we'll file it by the March 13th deadline.

Michael: We filed for rehearing of the disorder with the ICC and were denied.

We will also revise our multiyear rate plan to incorporate these grid plan revisions.

Michael: So on January 3rd Ameren, Illinois appeal, the ICC decision to the Illinois Fifth District Appellate Court.

In the meantime, the December order reflects a cumulative increase.

Michael: The ICC modify the return on equity answer implant this allowances among other things.

From 2024 through 2027 of $142 million in revenues.

Michael: The quoted under no deadline to address this appeal.

The order approved an allowed return on equity of approximately 872% and a 50% equity layer.

Michael: Turning to page 22 in December the ICC issued an order in our Ameren, Illinois electric multiyear rate and grid plan filings.

In January the Ameren, Illinois filed for rehearing of the December order with the ICC.

Michael: And it's the ICC establish an alternative revenue requirement based on our 22 2022 rate base and is requiring us to re file and provide additional justification for our grid plan.

On January 31, the ICC ordered a partial a rehearing regarding certain operations and maintenance expenses use of the 2022 rate base for establishing the revenue requirement for 2024 through 2027, and a base level of grid reliability investments.

Michael: We're in the process of revising our grid point and we will file it by the March 13th deadline.

Michael: We will also revise our multiyear rate plan to incorporate these grid plan revisions.

We expect a decision on these items subject to rehearing by the end of June with new interim rates expected to be effective at the discretion of the commission.

Michael: In the meantime, the December order reflects a cumulative increase from 2024 through 2027 of $142 million in revenues.

Following in the ITC as a response to a rehearing request Ameren, Illinois also following the appeal to the Illinois Fifth District Appellate Court on January 31 to address the remaining items, which were denied rehearing, including the return on equity.

Michael: The order approved an allowed return on equity of approximately 872% and a 50% equity layer.

Michael: In January and Ameren, Illinois filed for rehearing of the December order with the ICC.

The quarters under no deadline to address this appeal.

On January 31, the ICC order, a partial a rehearing regarding certain operations and maintenance expenses and use of the 2022 rate base for establishing the revenue requirement for 2024 through 2027, and a base level of grid reliability investments.

We remain focused on providing safe and adequate service for.

Illinois customers.

Moving to page 23, our overall outlook remains bright as we have a robust pipeline of investment opportunities, our ameren transmission, Missouri business segments continue to benefit from meaningful ongoing investments whereby reliable constructive regulation.

Michael: We expect a decision on these items subject to rehearing by the end of June with new interim rates expected to be effective at the discretion of the commission.

Here, we provide an overview of our $21 $9 billion of planned capital expenditures for 2024 through 2028 by business segment that supports our consolidated eight 2% compound annual rate base growth expectations.

Following in the Itc's response to our rehearing request Ameren, Illinois also follow on appeal to the Illinois Fifth District Appellate Court on January 31 to address the remaining items, which were denied rehearing, including the return on equity.

As you can see on the right side of this page, we're allocating capital consistent with the allowed return on equity under each regulatory framework.

Michael: The quarters under no deadline to address this appeal.

Our Ameren Missouri's Smart energy plan filed today with the Missouri PSC provides more detail on how we strategically invest to replace aging infrastructure with more resilient reliable equipment to serve our customers.

Michael: We remain focused on providing safe and adequate service for.

Michael: Illinois customers.

Michael: Moving to page 23, our overall outlook remains bright as we have a robust pipeline of investment opportunities, our ameren transmission, Missouri business segments continue to benefit from meaningful ongoing investments whereby reliable constructive regulation.

After five years of Smart energy plan investments, where a full year ahead of our initially planned smart meter installation in the state.

That said at our current investment levels, we still have decades of investment needed to address aging distribution, substations and overhead and underground lines.

Michael: Here, we provide an overview of our $21 $9 billion of planned capital expenditures for 2024 through 2028 by business segment that supports our consolidated eight 2% compound annual rate base growth expectations.

You can find additional details on this mine planning and allocation of our 2024 planned capital investments on page 32, and 33 in the appendix of this presentation.

Michael: As you can see on the right side of this page, we're allocating capital consistent with the allowed return on equity under each regulatory framework.

Turning to page 24.

Your line here the expected funding sources for the infrastructure investments noted on the prior page. We expect continued growth in cash from operations as investments are reflected in customer rates.

Michael: Our Ameren Missouri's Smart energy plan filed today with the Missouri PSC provides more detail on how we strategically invest to replace aging infrastructure with more resilient reliable equipment to serve our customers.

We also expect to generate significant tax deferrals, driven primarily by the timing difference between financial statement depreciation reflected in customer rates and accelerated depreciation for tax purposes.

Michael: After five years of Smart energy plan investments, where a full year ahead of our initially planned smart meter installation in the state.

Michael: That said at our current investment levels, we still have decades of investment needed to address aging distribution, substations and overhead and underground lines.

As we sit here today, we do not expect the transferability of solar and wind tax credit materially impact capital funding, nor do we expect the corporate minimum tax to apply during our five year plan.

You can find additional details on the strategy planning and allocation of our 2024 planned capital investments on page 32, and 33 in the appendix of this presentation.

From a financing perspective, we expect to continue to issue long term debt to fund a portion of our cash requirements.

Michael: Turning to page 24, we have now.

For us to maintain a strong balance sheet, while we fund our robust infrastructure investment plan, we have entered into forward sale agreements for $230 million of common stock issuances under our at the market equity distribution program to address most of our 2020 for equity needs.

Michael: Your line here the expected funding sources for the infrastructure investments noted on the prior page. We expect continued growth in cash from operations as investments are reflected in customer rates.

We also expect to generate significant tax deferrals, driven primarily by the timing difference between financial statement depreciation reflected in customer rates and accelerated depreciation for tax purposes.

We expect to sell these by the end of the year.

The only additional equity you expect to issue in 2024 will be approximately $70 million for our dividend reinvestment and employee benefit plans.

Michael: As we sit here today, we do not expect the transferability of solar and wind tax growth materially impact capital funding, nor do we expect the corporate minimum tax to apply during our five year plan.

Incremental equity issuance of approximately $600 million each year are planned for 2025 through 2028, a portion of which we expect to be issued through our drip and employee benefit plans.

Michael: From a financing perspective, we expect to continue to issue long term debt to fund a portion of our cash requirements.

The $600 million per year is unchanged from our previous plan outlined last February.

Michael: For us to maintain a strong balance sheet, while we fund our robust infrastructure investment plan, we have entered into a forward sales agreements for $230 million of common stock issuances under our at the market equity distribution program to address most of our 2020 for equity needs.

All of these actions are expected to sustain our strong balance sheet and credit ratings.

Moving to page 25 of our presentation I would now like to discuss key drivers impacting our 2024 earnings guidance.

We expect 2024 diluted earnings per share in the range of $4 52 per share to $4 72 per share.

Michael: We expect to sell these by the end of the year.

The only additional equity you expect to issue in 2024 will be approximately $70 million for our dividend reinvestment and employee benefit plans.

Accommodates a range of outcomes on our ongoing Alan a regulatory proceeding along with our typical business risk and opportunities.

Michael: Incremental equity issuance of approximately $600 million each year are planned for 2025 through 2028, a portion of which we expect to be issued through our drip and employee benefit plans.

Detail by segment as compared to the 2023 results can be found on this page and the next.

Beginning with Ameren, Missouri earnings are expected to rise in 2024.

Michael: The $600 million per year is unchanged from our previous plan outlined last February.

Earnings are expected to be favorably impacted by the higher investments in infrastructure that are eligible for pizza and efficacy treatment as well as new electric service rates effective July 2023.

All of these actions are expected to sustain our strong balance sheet and credit ratings.

Speaker Change: Moving to page 25 of our presentation I would now like to discuss key drivers impacting our 2024 earnings guidance.

Earnings are also expected to benefit from higher weather normalized kilowatt hour sales to Missouri residential and commercial customers, which are expected to increase by 1% year over year in 2024.

Speaker Change: We expect 2024 diluted earnings per share in the range of $4 52 per share to $4 72 per share.

While sales to industrial customers are expected to increase by 4% year over year.

Speaker Change: Thats accommodates a range of outcomes on our ongoing on a regulatory proceeding along with our typical business risk and opportunities.

These projected increases are driven primarily by customer count growth and general monitors resuming full production levels. After a work stoppage in the third quarter of 2023.

Speaker Change: Detail by segment as compared to the 2023 results can be found on this page and the next.

Speaker Change: Beginning with Ameren, Missouri earnings are expected to rise in 2024.

We also expect to benefit from lower operations and maintenance expenses.

Speaker Change: Earnings are expected to be favorably impacted by the higher investments in infrastructure that are eligible for pizza and efficacy treatment as well as new electric service rates effective July 2023.

And we expect a return to normal weather in 2024 will increase Ameren, Missouri earnings by approximately <unk> <unk> compared to 2023 results.

These favorable factors are expected to be partially offset by higher interest expense, primarily due to higher long term debt balances.

Speaker Change: Earnings are also expected to benefit from higher weather normalized kilowatt hour sales to Missouri residential and commercial customers, which are expected to increase by 1% year over year in 2024.

Moving on earnings from our FERC regulated electric transmission activities are expected to benefit from additional investments in Ameren, Illinois, and <unk> projects made under forward looking formula Ratemaking.

While sales to industrial customers are expected to increase by 4% year over year.

Turning to page 26.

Speaker Change: These projected increases are driven primarily by customer count growth and general motors resuming full production levels. After a work stoppage in the third quarter of 2023.

For Ameren, Illinois electric distribution the year over year earnings comparison will be impacted by the lower allowed ROE approved by the ICC in the multiyear rate plan versus the 2023 allowed ROE, which was driven by the 30 year Treasury rates plus 580 basis points.

Speaker Change: We also expect to benefit from lower operations and maintenance expenses.

Speaker Change: And we expect a return to normal weather in 2024 will increase Ameren, Missouri earnings by approximately <unk> <unk> compared to 2023 results.

The allowed ROE is applied to year end rate base, which includes 2023 rate base and 2024 planned capital additions.

Speaker Change: These favorable factors are expected to be partially offset by higher interest expense, primarily due to higher long term debt balances.

For Ameren, Illinois natural gas earnings benefited from a higher delivery service rates effective November 2023, incorporating additional infrastructure investment, partially offset by a lower allowed ROE and common equity ratio.

Speaker Change: Moving on earnings from our FERC regulated electric transmission activities are expected to benefit from additional investments in Ameren, Illinois.

Speaker Change: And <unk> projects made under forward looking formula Ratemaking.

Earnings will also benefit from lower operations and maintenance expenses.

Turning to page 26.

Moving now to Ameren wide drivers and assumptions, we expect increased weighted average common shares outstanding to unfavorably impact earnings per share.

Speaker Change: For Ameren, Illinois electric distribution the year over year earnings comparison will be impacted by the lower allowed ROE approved by the ICC in the multiyear rate plan versus the 2023 allowed ROE, which was driven by the 30 year Treasury rates plus 580 basis points.

We expect higher interest rate expense and ameren parent due to increased debt balances.

At the end of 2023 return, we can turn that all then outstanding commercial paper balances at Ameren parent through two debt offerings. The first issued in November was $600 million and a five 7% senior unsecured notes due in 2026.

Speaker Change: The allowed ROE is applied to year end rate base, which includes 2023 rate base and 2024 planned capital additions.

Speaker Change: For Ameren, Illinois natural gas earnings benefited from higher delivery service rates effective November 2023, incorporating additional infrastructure investment, partially offset by a lower allowed ROE and common equity ratio.

And then second in December was $700 million of 5% senior unsecured notes due in 2029.

Of course in 2024, we will seek to manage all of our businesses to earn as close to our allowed returns as possible.

Speaker Change: Earnings will also benefit from lower operations and maintenance expenses.

With that in mind that support our expectation for lower operations and maintenance expenses in our Ameren, Missouri, and Illinois natural gas businesses, we've instituted several cost saving initiatives in 2024, including a hiring freeze, reducing our contractor and consultant workforce and deferring or eliminating discretionary spend will be strategic.

Speaker Change: Moving now to Ameren wide drivers and assumptions, we expect increased weighted average common shares outstanding due to unfavorable impact to earnings per share.

Speaker Change: We expect higher interest rate expense and ameren parent due to increased debt balances.

Speaker Change: At the end of 2023 return, we can turn that all then outstanding commercial paper balances at Ameren parent through two debt offerings. The first issued in November was $600 million and a five 7% senior unsecured notes due in 2026.

About workforce management and continued investment in digital efficiency to allow us to sustain these cost reductions.

Moving on I'd like to touch on unexpected sales growth for our service territory.

Speaker Change: And the second in December was $700 million.

While we are conservative in our modeling we are optimistic about the opportunity for strong economic development in the years ahead and.

Speaker Change: A 5% senior unsecured notes due 2029.

Speaker Change: Of course in 2024, we will seek to manage all of our businesses to earn as close to our allowed returns as possible.

In the last three years, our economic development teams that can help to bring 65, new projects to our communities in Missouri and over 125 projects in Illinois, bringing with an estimated total of over 14000 jobs.

Speaker Change: With that in mind that support our expectation for lower operations and maintenance expenses in our Ameren, Missouri, and Illinois natural gas businesses, we've instituted several cost saving initiatives in 2024, including a hiring freeze, reducing our contractor and consultant workforce and deferring or eliminating discretionary spend will be.

Rogers are generally expected to be completed in the next couple of years.

With that in mind, we expect weather normalized kilowatt hour sales to be in the range of flat to up approximately 5% compounded annually over a five year plan.

Speaker Change: About workforce management and continued investment in digital efficiency to allow us to sustain these cost reductions.

Excluding the effects of our energy efficiency plans using 2023 is the base year.

Speaker Change: Moving on I'd like to touch on expected sales growth for our service territory.

Excluding the effects because the plan provides rate recovery to ensure that earnings are not affected by reduced electric sales, resulting from our energy efficiency efforts.

Speaker Change: Our conservative in our modeling we are optimistic about the opportunity for strong economic development in the years ahead and.

Turning to Illinois, we expect our weather normalized kilowatt hour sales to be relatively flat to down <unk>, 5% over our five year plan driven primarily by increases in energy efficiency and solar adoption.

Speaker Change: In the last three years, our economic development teams that can help to bring 65, new projects to our communities in Missouri and over 125 projects in Illinois, bringing with an estimated total of over 14000 jobs.

Recall that changes in Illinois electric sales no matter the cause do not affect earnings since we have full revenue decoupling.

Speaker Change: Rogers are generally expected to be completed in the next couple of years.

Speaker Change: With that in mind, we expect weather normalized kilowatt hour sales to be in the range of flat to up approximately 5% compounded annually over a five year plan.

Finally, moving to page 27, I'll emphasize again that we have a strong team have a long track record of execution. We delivered strong earnings growth in 2023, and expect to continue to deliver 6% to 8% compound earnings per share growth over the next five years, driven by robust rate base growth and disciplined cost management.

Speaker Change: Excluding the effects of our energy efficiency plans using 2023 is the base year.

Speaker Change: Excluding the effects because the plan provides rate recovery to ensure that earnings are not affected by reduced electric sales, resulting from our energy efficiency efforts.

We believe this growth will compare favorably with the growth of our peers further ameren shares continue to off investors an attractive dividend in total we have an attractive total shareholder return story that concludes our prepared remarks, we now invite your questions.

Turning to Illinois, we expect our weather normalized kilowatt hour sales to be relatively flat to down <unk>, 5% over our five year plan driven primarily by increases in energy efficiency and solar adoption.

Thank you we will now be conducting a question and answer session.

Speaker Change: Recall that changes in Illinois electric sales no matter the cause do not affect earnings since we have full revenue decoupling.

If you would like to ask a question. Please press star one on your telephone keypad.

Speaker Change: Finally, moving to page 27, I'll emphasize again that we have a strong team have a long track record of execution.

Confirmation tone will indicate your line is in the question queue.

You May press Star two if you would like to remove your questions on the queue.

Speaker Change: We delivered strong earnings growth in 2023, and expect to continue to deliver 6% to 8% compound earnings per share growth over the next five years, driven by robust rate base growth and disciplined cost management.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys one.

One moment, please while we poll for questions.

Thank you. Our first question comes from the line of Shar <unk> with Guggenheim. Please proceed with your question.

Speaker Change: We believe this growth will compare favorably with the growth of our peers.

Speaker Change: 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.

Hey, guys good morning.

Good morning, Shar good morning, Marty.

Obviously, you've throttled back, Illinois electric spent here pretty significantly versus the prior plan, which I think is completely expected coming off those ICC orders can you just speak a little bit more to what you have actually embedded in the two 3% five year CAGR as it relates to the grid plan I guess put differently could we see that.

Speaker Change: Thank you.

Speaker Change: We'll now be conducting a question and answer session.

Speaker Change: If you would like to ask a question. Please press star one on your telephone keypad.

Speaker Change: A confirmation tone will indicate your line is in the question queue.

Speaker Change: You May press Star two if you would like to remove your question from the queue.

Tick higher later this year once the plan is approved or is the embedded base case, theyre still subject to some upside and downside scenarios. Thanks.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key win.

Speaker Change: Please while we poll for questions.

Yes, I'll, let Michael comment on that further, but I would say sure youre right.

Guggenheim: Thank you. Our first question comes from the line of sharper either with Guggenheim. Please proceed with your question.

What we've done here is we baked in what we believe to be a prudent level of capital expenditures given the overall outcomes that we had in Illinois as we said in our prepared remarks, we do believe that.

Shaper: Hey, guys good morning.

Good morning, good morning.

Marty obviously, you've throttled back, Illinois electric spent here pretty significantly versus the prior plan, which I think is completely expected coming off those.

This is an appropriate amount to continue to provide safe and adequate service to our customers and meet the requirements of seizure and Thats whats been baked in I, just repeat what I said earlier, which is that we do believe a higher amount of investment over time as originally.

Shapero: <unk> orders can you just speak a little bit more to what you have actually embedded in that two 3% five year CAGR as it relates to the grid plan I guess put differently could we see that tick higher later this year. Once the plan is approved or is the embedded base case, theyre still subject to some upside and downside scenarios. Thanks.

Proposed last year.

Is prudent and appropriate for our customers to provide the kind of service that they expect really further the.

Speaker Change: Yes, I'll let.

Speaker Change: Michael comment on that further, but I would say sure youre right.

The state's energy goals and policy goals, but.

Michael: What we've done here is we baked in what we believe to be a prudent level of capital expenditures given the overall outcomes that we had in Illinois as we said in our prepared remarks, we do believe that.

Again, what we've modeled in here is what we do believe would be a level that would be expected to be approved by the commission over time through the rehearing process as well as through our upcoming grid plan filing and rate plans. So again, we do expect that this level of investment is something that.

Michael: This is an appropriate amount to continue to provide safe and adequate service to our customers and meet the requirements of seizure and that's what's been baked in I just repeat what I said earlier, which is that we do believe a higher amount of investment over time as originally.

We will ultimately be reflected in those outcomes, but with that in terms of.

Further clarity on the Capex, Michael any comments, yes, maybe just a couple.

Finer points. Good morning, Shar I think Marty you said it well I mean, as we think about the capital plan that we've allocated there again Marty is correct I mean, we're absolutely focused on providing safe and reliable service.

Michael: Proposed last year.

Michael: Is prudent and appropriate for our customers to provide the kind of service that they expect to really further the.

Michael: The state's energy goals and policy goals, but.

We are being conservative in how we think about that as.

Michael: Again, what we've modeled in here is what we do believe would be a level that would be expected to be approved by the commission over time through the rehearing process as well as through our upcoming grid plan filing and rate plans. So again, we do expect that this level of investment is something that we.

105% revenue requirement cap that we need to stay.

Standard Nathan.

As you know and I think there was some discussion about this the commission's order pointed into 22 rate base I think it was really more of a function of because that was really the only year end rate base to point to I mean, we definitely have the ability to recover.

Michael: We will ultimately be reflected in those outcomes, but with that in terms of.

We will recover our 'twenty three expenditures, it's really under another formula rate.

Further clarity on the Capex, Michael any comments, yes, maybe just a couple.

As they do that and they update and we're seeking some of those clarification. Then obviously, we'd give you more headroom under that 105% revenue cap I think we took a conservative approach, saying, let's make sure whatever we spend in 'twenty four we stay under pointing back to that 22.

Michael: No finer points. Good morning, Shar I think Marty you said it well I mean, as we think about the capital plan that we've allocated there again Marty is correct I mean, absolutely.

Michael: Absolutely focus on providing safe and reliable service I think we're being conservative in how we think about that as the.

So my point is you have a lot of more flexibility going forward I think to Marty's point, we will have to step back and then decide.

Michael: 105% revenue requirement cap that we need to stay.

Given the April 17, how do you feel about allocating more capital there, but as we continue to see improvement here, there's obviously would be those opportunities.

Michael: Standard Nathan as.

Michael: As you know and I think there were some discussion about this.

Michael: Commissions order pointed into 22 rate base I think it was really more of a function of because that was really the only year end rate base to point to I mean, we definitely have the ability to recover.

Got it perfect and then Marty just thanks, Michael Marty just on track.

Tranche one is it versus tranche two is it still your expectation transferable exceed tranche one and then just on tranche. Two estimates are they embedded in that $55 billion pipeline numbering could any of the awards fall within this kind of a five year cycle, you've got out there. Thanks guys.

Michael: We will recover our 'twenty three expenditures, that's really under another formula rate.

Michael: As they do that and they update and we're seeking some of those clarification that obviously, we can give you more headroom under that 105% revenue cap I think we took a conservative approach saying.

Michael: To make sure whatever we spend in 'twenty four we stay under pointing back to the 22.

Yes, good questions sure so with respect to tranche two we do expect that.

Michael: So my point is you have a lot of more flexibility going forward I think to me.

To expect it to be considerably larger than the tranche one investments.

Michael: <unk> will have to step back and then decide.

Michael: Given the April 17, how do you feel about allocating more capital there, but you know as we continue to see improvement here, there's obviously would be those opportunities.

And.

MISO as we said in our prepared remarks is still saying that they expect to have those approved by the middle of this year.

Speaker Change: Got it perfect and then Marty just thanks, Michael Marty just on on tranche. One is it versus tranche two is it still your expectation transferable exceed tranche one and then just on tranche. Two estimates are they embedded in that $55 billion pipeline numbering could any of the awards fall within this kind of five.

We'll see how that comes to fruition, but we do expect that in the first half or will at a minimum start to get some clarity on what some of those projects that might look like but again short of your point is significantly larger now with respect to our plans that we've laid out within the five year plan nothing is baked in for tranche.

Speaker Change: Year cycle, you've got out there thanks guys.

Two investments however, in the $55 billion, we do have.

Speaker Change: Yes, good questions sure so with respect to tranche two we do expect it.

Some amount in there.

Potential tranche two investments so within the $55 billion, yes, certainly we do have some.

Speaker Change: Continue to expect it to be considerably larger than the tranche one investments.

Speaker Change: MISO as we said in our prepared remarks is still.

Okay. Thanks for the questions Yeah, no I appreciate it. Thank you guys. So much fantastic I'll see you soon.

Speaker Change: Saying that they expect to have those approved by the middle of this year.

Alright, Thanks John.

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

Speaker Change: We'll see how that comes to fruition, but we do expect that in the first half or will at a minimum start to get some clarity on what some of those projects that might look like but again short of your point significantly larger now with respect to our plans that we've laid out within the five year plan nothing is baked in for <unk>.

Hey, Thanks for taking my question today Happy Friday.

Okay. Yeah I appreciate the guidance update in just the comment that you're kind of below the midpoint of the six to eight range can you just kind of expand on what we should be watching for that kind of gets you back to that midpoint and I'm taking into account the comments around it seems that some of this transmission.

Speaker Change: Two investments however, in the $55 billion, we do have.

Some amount in there for potential tranche two investments so within the 55 billion, yes, certainly we do have some.

Spending has been reflected in the plan correct me if I'm wrong and then you also just kind of assuming.

Speaker Change: Thanks for the questions Yeah, no I appreciate it. Thank you guys. So much fantastic I'll see you soon.

Capex.

Illinois distribution segment as proposed is approved as well just what should we be looking forward to get you back into that mid point.

Speaker Change: Alright, Thanks John.

Speaker Change: Our next question comes from the line of Nicholas Campanella with Barclays. Please proceed with your question.

Yes, maybe I'll take that in two part I'll actually turn it over to Michael <unk> to maybe provide a little bit more clarity on our thinking around.

Nicholas Campanella: Hey, Thanks for taking my question today Happy Friday.

Nicholas Campanella: Yes. Thank you I guess, yeah I appreciate the guidance update in just the comment that you're kind of below the midpoint of the six to eight range can you just kind of expand on what we should be watching for that kind of gets you back to that midpoint and I'm taking into account the comments around it seems that some of this transmission.

The growth and then I'll provide some color on some of the.

Upsides in our plan.

Yes. Good morning, maybe just to put a little finer point on the midpoint I think as Marty said in his comments you expect to be a little below that midpoint.

If you think about historically, where we have been.

The highest level.

Nicholas Campanella: <unk> spending has been reflected in the plan correct me if I'm wrong and then you also just kind of assuming.

Back to February of last year, we had eight 4% rate base growth.

Over that period of time, we're issuing roughly about 2% worth of dilution say over the five year plan. So we got you down to call. It 6465, something like that and then we've done a nice job of continuing.

Nicholas Campanella: Capex.

Nicholas Campanella: For the Illinois distribution segment as proposal is.

Nicholas Campanella: Is approved as well just what should we be looking forward to get you back into that mid point. Thanks.

Speaker Change: Yes, maybe I'll take that in two part I'll actually turn it over to Michael <unk> to maybe provide a little bit more clarity on our thinking around it.

Close the allowed versus earned gaps et cetera continuous improvement there's been a number of opportunities being really thoughtful about allocating capital to the places that are giving us the highest return.

Michael: The growth and then I'll provide some color on some of the.

Michael: Upsides in our plan.

And you can see obviously historically, we were trending above that 7% midpoint and we kind of think about where we are today. We got this eight 2% rate base growth really kind of the same dilution math. So it all things being equal kind of put you at six two and then there is obviously still improvement opportunities as we continue to look forward and I think as we think about our mid.

Michael: Yes. Good morning, maybe just to put a little finer point on the midpoint I think as Marty said in his comments you unexpected a little below that midpoint.

Michael: If you think about historically, where we have been just sort of the highest level.

Michael: Go back to February of last year, we had eight 4% rate base growth.

Michael: Over that period of time, we're issuing roughly about 2% worth of dilution say over the five year plan. So got you down to call. It 6465, something like that and then we've done a nice job of continuing to close the allowed versus earned gaps et cetera continuous improvement there's been a number of opportunities being really thoughtful about.

<unk> it someplace between that six five to seven days.

Call. It 67, just to put a little finer point on so 67 versus sort of 7%, where I think we kind of pointed people historically.

And again, we've had opportunities to do better than that and Marty I will talk about where I think the future still lies for US you can think about the $55 billion of capital projects that we have there.

Michael: Allocating capital to the places they are giving us the highest return.

Opportunity to continue to be thoughtful about the transmission that we just talked about a second ago and so those are the things that will provide us those opportunities. So hopefully that gives you a little more clarity on our math and I'll, let Marty talk.

Michael: And you can see obviously historically, we were trending above that 7% midpoint and we kind of think about where we are today. We got this eight 2% rate base growth really kind of the same dilution math.

Larger picture, Yes, I think Michael started to touch on a little bit in terms of the upsides as I said in the prepared remarks, we certainly see.

Michael: So with all things being equal kind of put you at six two and then Theres, obviously still improvement opportunities as we continue to look forward and I think as we think about our midpoint at some place between that six five to seven days.

Good justification for keeping that six up to 8% growth.

What it reflects is that strong pipeline of investments that we have we start there $55 billion of potential investments over the next 10 years.

Speaker Change: Call. It six seven just to put a little finer point on so 67 versus sort of 7%, where I think we're kind of pointing people historically.

We have baked into the five year plan the tranche one investments that we've been assigned to us or that we've won but we also have competitive proposal out there right now for another tranche, one project, which hasnt been baked in and that provides us some upside we've talked about just a second ago. Some of the tranche two projects, we've got further investments to.

Speaker Change: And again, we've had opportunities to do better than that and Marty I will talk about where I think the future still lies for us you'd think about the $55 billion of capital projects that we have there.

Speaker Change: Opportunities to continue to be thoughtful about the transmission that we just talked about a second ago and so those are the things that will provide us those opportunities. So hopefully that gives you a little more clarity on our math I'll, let Marty talk.

Made with respect to Missouri as it relates to the AARP, we've got some of those certainly baked in today.

Martin J. Lyons: Larger picture, Yes, I think Michael started to touch on a little bit in terms of the upsides as I said in the prepared remarks, we certainly see.

As I mentioned, we had a very strong balance sheet.

And opportunities as Michael just said to continue to close the gap between our allowed and earned returns which provides upside and then of course as we look ahead in Illinois, a couple of things I mean first the current multiyear grid plan rate plan ends in 2027, and so as we look out even to 2028.

Good justification for keeping that six up to 8% growth.

Martin J. Lyons: And really what it reflects is that strong pipeline of investments that we have we start there $55 billion of potential investments over the next 10 years.

Martin J. Lyons: We have baked into the five year plan the tranche one investments that we've been assigned to us or that we've won but we also have competitive proposal out there right now for another tranche, one project, which hasnt been baked in and that provides us some upside we've talked about just a second ago. Some of the tranche two projects got further investments to.

As opportunities to think about that differently and what our approach will be in 2028.

And then I go back to the maybe the most important thing which is in the interim to really work to improve the Illinois situation and perhaps provide an opportunity for greater investment in Illinois. So.

Martin J. Lyons: Made with respect to Missouri as it relates to the IRB, we got some of those certainly baked in today.

There as we said in the call we're going to continue to engage in a dialogue with all stakeholders about the benefits of the investment risks of disinvestment.

Martin J. Lyons: As I mentioned, we had a very strong balance sheet.

Martin J. Lyons: And opportunities as Michael just said to continue to close the gap between our allowed and earned returns which provides upside and then of course as we look ahead in Illinois, a couple of things I mean first the current multiyear grid plan rate plan ends in 2027, and so as we look out even to 2028.

And our goal of really aligning our investments with the policy goals of the state around reliability affordability of the clean energy transition and of course, we all know that our investments drive.

Not only improvements in critical energy infrastructure, but jobs and economics expansion. So look we've got to just continue to.

Martin J. Lyons: Opportunities to think about that differently and what our approach will be in 2028.

Show financial discipline in the short term.

Martin J. Lyons: And then I go back to the maybe the most important thing which is in the interim to really work to improve the Illinois situation and perhaps provide an opportunity for greater investment in Illinois. So.

But in the longer term make sure we create this dialogue that having consistent constructive regulation, having strong investment infrastructure in the state is going to benefit our customers our communities and the economy of the state and continue to work to make Illinois a place.

Martin J. Lyons: There as we said in the call we're going to continue to engage in a dialogue with all stakeholders about the benefits of the investment risks of disinvestment.

Detracts greater investment.

Okay.

Alright, Thank you very much for that.

Martin J. Lyons: And our goal of really aligning our investments with the policy goals of the state around reliability affordability, the clean energy transition and of course, we all know that our investments drive.

And then I guess just on the O&M I think in your prepared remarks around even on slides here, 4% versus last year.

And then Youre doing more O&M, just looking through the EPS.

Martin J. Lyons: Not only improvements in critical energy infrastructure, but jobs and economic expansion. So look we've got to just continue to.

Slides you have positives from Missouri, and Illinois. So just is 4% of the magnitude of decrease that we should should expect to continue through 'twenty. Four can you maybe give us any type of way to frame that and then how are you kind of thinking about just recapture of that or timing of the next rate cases in Missouri. If you can maybe.

Show financial discipline in the short term.

Martin J. Lyons: But in the longer term make sure we create this dialogue that having consistent constructive regulation, having strong investment in infrastructure in the state is going to benefit our customers our communities and the economy of the state and continue to work to make Illinois, a place that attracts greater investment.

It's Ben.

Hey, Good morning, again, Nicholas Michael Let me take this Marty can certainly add in.

Martin J. Lyons: Yeah.

Talked about this obviously over time and customer affordability is not something that is new to us I think we've been really focused.

Speaker Change: Alright, Thank you very much for that.

Speaker Change: And then I guess just on the O&M I think in your prepared remarks around even on slides here, 4% versus last year.

As a company on it for a number of years and really up and down the P&L. We've talked about is we I think do a great job of kind of going in and continue to benchmark ourselves all of the different areas of our business.

Speaker Change: And then Youre doing more O&M, just looking through the EPS.

Speaker Change: Slides, you have positives from Missouri, and Illinois, So just 4% of the magnitude of decrease that we should should expect to continue through 'twenty. Four can you maybe give us any type of way to frame that and then how are you kind of thinking about just recapture of that or timing of the next rate cases in Missouri.

Some are really good some have opportunities and we continue to close the gap in those opportunities.

Marty pointed to the 4%.

Obviously people are very focused on and we've talked about flat O&M over the five year period is a good way to think about it but the bottom line is there are a number of levers that are able we're able to pull here I think as we think about 'twenty four specifically I mean I mentioned in my opening remarks, I think we're taking just another review here, we're looking at head count as often.

Speaker Change: Maybe maybe expand.

Speaker Change: Hey, Good morning, again, Nicholas Michael Let me take this Marty can certainly add in and we've talked about this obviously over time and customer affordability is not something that is new to us I think we've been really focused.

The head count.

Hiring freeze of the moment and being very thoughtful about just contingent workforce consultant dollars.

Speaker Change: As a company on it for a number of years and really up and down the P&L and we talked about as we I think do a great job of kind of going in and continue to benchmark ourselves all of the different areas of our business.

Any sort of discretionary spend I think all the right things to do just in this elevated rate environment in any way for customers and so that's really the focus there.

Speaker Change: Some are really good somehow opportunities and continue to close the gap in those opportunities.

But we're also being very very thoughtful and strategic about as you mentioned, just great reviews et cetera, and being thoughtful about investments on the digital side to just to make sure. We can make these cost sustainable that's really what we want to do.

Speaker Change: Marty pointed to the 4%. It was obviously people are very focused on and we've talked about flat O&M over the five year period is a good way to think about it but the bottom line is there are a number of levers that are able we're able to pull here I think as we think about 'twenty four specifically I mean I mentioned in my opening remarks, I think we're taking just.

We've talked about we've had an increased investment in the digital platform over the last several years. After we got a piece of the past and it's allowed us to replace our work management systems. Our back office accounting systems. We continue to put a great deal of distribution automation et cetera on the CIS I mean, all of these things are productivity improvements.

Speaker Change: Another review here, we're looking at head count and talked about the head count.

Speaker Change: Hiring freeze at the moment and being very thoughtful about just contingent workforce consultant dollars.

Speaker Change: Any sort of discretionary spend I think all the right things to do just in this elevated rate environment in any way for customers and so thats really the focus there.

Over time, which just gives us a lot of confidence. This is a lever that we can continue to pull so barring anything to add there no nothing to add thanks for the question.

Speaker Change: But we're also being very thoughtful and strategic about as you mentioned, just great reviews et cetera, and being thoughtful about investments on the digital side too just to make sure. We can make these cost sustainable that's really what we want to do.

And Im sorry, I, just just to follow up on that are you planning to file a Missouri rate case in the next year or is that more than a year out.

Yes.

Not something we've decided yet and.

Look if you look back over time.

Speaker Change: We've talked about we've had an increased investment in the digital platform over the last several years. After we got a piece of the past and it's allowed us to replace our work management systems. Our back office accounting systems. We continue to put a great deal of distribution automation et cetera on the system and all of these things are productivity improvements.

It's been every 18 to 24 months, we've we filed the case, but havent.

We haven't stated one we're going to plan to file the next one so we'll be thoughtful about that.

Look we always try to go as long as we can between rate cases, and will continue to take that approach, but we'll be thoughtful about when major capital additions go in and the like to.

Over time, which just gives us a lot of confidence. This is a lever that we can continue to poll, so marty anything to add there no nothing to add there. Thanks for the question.

To think about the timing of our cases.

Alright, thanks for thanks for taking my questions have a good day you bet. Thanks.

And I'm, sorry, I, just just to follow up on that are you planning to file a Missouri rate case in the next year or is that more than a year out.

Our next question comes from the line of Jeremy Tonet with Jpmorgan. Please proceed with your question.

Yes.

Hi, good morning.

Speaker Change: And that's something we've decided yet.

Hello, Jeremy good morning.

Speaker Change: Look if you look back over time.

Thanks for all the detail today, and just wanted to kind of follow up on some of the points.

Martin J. Lyons: It's been every 18 to 24 months, we've we filed the case, but havent.

You've talked about before and just regarding your capital reallocation.

Martin J. Lyons: We haven't stated one we're going to plan to file the next one so we'll be thoughtful about that.

How should we be thinking about Missouri, bill impact over time from the higher Capex.

Martin J. Lyons: Look we always try to go as long as we can between rate cases, and will continue to take that approach, but we'll be thoughtful about when major capital additions go in and the like to.

Just any thoughts there and then also as we think about that.

Deploying that capital the timing for receiving approvals permits and additional transmission investments.

Martin J. Lyons: To think about the timing of our cases.

Speaker Change: Alright, thanks for thanks for taking my questions have a good day you bet. Thanks.

Speaking on that side, if you could provide some more color there would be helpful.

Yes ill, let there Jeremy I think number one in terms of bill impacts.

Speaker Change: Our next question comes from the line of Jeremy Tonet with Jpmorgan. Please proceed with your question.

We're going to work through time as we have to keep the bill impact is manageable as possible I think we.

Jeremy Bryan Tonet: Hi, good morning.

Jeremy Bryan Tonet: Hello, Jeremy good morning.

Jeremy Bryan Tonet: Thanks for all the detail today, and just wanted to kind of follow up on some of the points that you've talked about before and just regarding your capital reallocation.

It had a pretty good track record in Missouri.

We get more constructive regulation and legislation back in 2018, and it really kept the growth in bills really below the level of inflation.

Jeremy Bryan Tonet: How should we be thinking about Missouri, bill impact over time from the higher Capex.

So we're going to look to continue to as Michael stated a minute ago pretty comprehensively take a lot of actions across the board to really manage our operating cost and really to the extent that we have a rate increase request really make those about the capital additions that are going in that are producing greater reliability.

Jeremy Bryan Tonet: Just any thoughts there and then also as we think about that.

Jeremy Bryan Tonet: Deploying that capital the timing for receiving approvals and permits for the additional transmission investment.

Jeremy Bryan Tonet: Broadly speaking on that side, if you could provide some more color there would be helpful.

Speaker Change: Yes, a lot there Jeremy I think number one in terms of bill impacts.

For our customers et cetera, where they're seeing the benefits. So we're going to continue to work to keep our bell tight and.

Speaker Change: We're going to work through time as we have to keep the bill impact is manageable as possible I think we.

As I said overall look to keep our operating costs flat over the next several years and as Michael said create as many productivity improvements as we can so thats our goal that with respect to these projects I would say when you look at our capital expenditure plans over the next five years for Missouri.

Speaker Change: It had a pretty good track record in Missouri.

We get more constructive regulation legislation back in 2018, and it really kept the growth in bills really below the level of inflation.

Speaker Change: So we're going to look to continue to as Michael stated a minute ago pretty comprehensively take a lot of actions across the board to really manage our operating costs and really to the extent that we have a rate increase request really make those about the capital additions that are going in that are producing greater reliability.

I would say a needs they really relate it on the left side of the graph on page 23 to things that were included in our integrated resource plan. So.

Sure.

Greater resource plan had called for 2800 megawatts of renewables by 2030. This is a piece of that as we move ahead with renewables over half of what we've got there in that capital spend of $3 3 billion is related to <unk> that have already been approved and then theres four Ccs that are pending right now.

Speaker Change: For our customers et cetera, where they're seeing the benefits. So we're going to continue to work to keep our bell tight and.

Speaker Change: As I said overall look to keep our operating costs flat over the next several years and as Michael said create as many productivity improvements as we can so that's our goal that with respect to these projects I would say when you look at our capital expenditure plans over the next five years for Missouri.

And we expect to be able to file a stipulated settlement on those in the near term and so those are proceeding well.

With respect to the dispatch of generation.

Part of this is the simple cycle gas plant that we plan to put in service over the next five years and then part of this is continuing to invest in the dispatch will energy resources that we have in the state.

I would say a needs they really relate it on the left side of the graph on page 23 to things that were included in our integrated resource plan. So.

Speaker Change: Sure.

Speaker Change: Greater resource plan had called for 2800 megawatts of renewables by 2030.

But we will as we said on our call we have begun to.

Do you work around this 800 megawatt simple cycle gas plants and.

Speaker Change: This is a piece of that as we move ahead with renewables over half of what we've got there in that capital spend of $3 3 billion is related to <unk> that have already been approved and then there's <unk> that are pending right now.

We'll consider when to file a CCN for that so those are some timelines in terms of some of the investments we've got Michael any color that Mark you did a great job there Jeremy I think the only thing that I would probably add there is if you think about the $13 billion that we're allocating the Missouri about 25% of its renewables and obviously an important factor is just.

Speaker Change: We expect to be able to file a stipulated settlement on those in the near term and so those are proceeding well.

Speaker Change: With respect to the dispatch of generation.

The PTC ITC and its being given off with respect to those projects. So you think about the impact for customers often want I mean, there is a really big benefit there and so that's just something to keep in mind I agree with everything else. Marty said I mean, we continue to be focus to all the comments I made before it's not something new that we're doing here.

Speaker Change: Part of this is the simple cycle gas.

Speaker Change: Gas plant that we plan to put in service over the next five years and then part of this is continuing to invest in the dispatch will energy resources that we have in the state but.

But we will as we said on our call we've begun to.

Speaker Change: Do you work around this 800 megawatt simple cycle gas plants, and we will consider when to file a CCN for that so those are some timelines in terms of some of the investments we've got Michael any color that Mark you did a great job there Jeremy I think the only thing that I would probably add there is if you think about the $13 billion that we're allocating them.

Sometimes you can get a little lumpy impact in Missouri, just because of the timing of the rate reviews, but the team really is focused on trying to keep these bills as low as possible.

Got it.

That's very helpful. Thank you for that and maybe just shifting towards Illinois in from where you sit just wondering your perspective.

Speaker Change: About 25% of it is renewables.

Michael: And obviously an important factor is just the PTC ITC and its being given off with respect to those projects. When you think about the impact for customers. Ultimately I mean, there is a really big benefit there and so.

Do you see happening with regards to potential.

Legislative or legal responses to the Illinois orders there.

In the state House, how have your conversations with stakeholders been trending here just any.

Speaker Change: It's just something to keep in mind I agree with everything else Marty said I mean, we continue to be focus to all the comments I made before it's not something new that we're doing here.

Color you could share would be helpful.

Yes, I think look the first order of business as we look ahead is as I said before to really try to work constructively with.

Speaker Change: You can sometimes you can get a little lumpy impact in Missouri, just because of the timing of the rate reviews, but the team really is focused on trying to keep these bills as low as possible.

Stakeholders and right now I'd say, our primary focus is as a couple of things it's number one.

Speaker Change: Yeah.

Making the rehearing filing which is we plan to make next Thursday.

Speaker Change: Got it.

Speaker Change: Very helpful. Thank you for that and maybe just shifting towards Illinois and from where you sit just wondering your perspective, and what you see happening with regards to potential.

There the opportunity to have rehearing around incorporation of 2023 rate base.

As well as baseline capital investments that we plan to make over the next five years and have those included in our rehearing.

Speaker Change: Legislative or legal responses to the Illinois orders there.

Speaker Change: The state House, how have your conversations with stakeholders been trending here just any.

And then as we've said before we followed that up with our grid plan update and filing in mid March.

Speaker Change: Color you could share would be helpful.

There again, we get feedback from the commission obviously on deficiencies that they saw within the initial filing we're looking to address those we're looking to work constructively with stakeholders, whether it's the staff or other parties.

Speaker Change: Yes, I think look the first order of business as we look at is as I said before to really try to work constructively with.

Speaker Change: Stakeholders and right now I'd say, our primary focus is as a couple of things it's number one.

To make our filing as strong as we can to address the the.

Speaker Change: Making the rehearing filing which is we plan to make next Thursday.

Commissions.

Speaker Change: So there the opportunity to have rehearing around incorporation of 2023 rate base as.

Identified deficiencies and position ourselves for success in getting again, both a good outcome and that we're hearing as well as getting that grid plan.

Speaker Change: As well as baseline capital investments that we plan to make over the next five years and have those included in our rehearing.

Proved and ultimately incorporated into a revised rate plans. So I think those are really our focus is our in the short term.

And then as we've said before we followed that up with our grid plan update and filing in mid March.

Like I said in the longer term, we'd like to see a more constructive environment for investment and Thats going to take really engagement with all stakeholders and I think what we found is the receptivity amongst stakeholders to have the conversation to listen.

And there again, we get feedback from the commission obviously on deficiencies that they saw within the initial filing we're looking to address those we're looking to work constructively with stakeholders, whether it's the staff or other parties.

And we'll figure out over time, what the best path forward is two to.

Speaker Change: To make our filing as strong as we can to address the.

To achieving the result, we want which is a more constructive environment for investment, which again, we believe results lay in the best interest of customers communities and the achievement of the state's policy goals.

Speaker Change: The commissions.

Speaker Change: Identified deficiencies and position ourselves for success in getting again, both a good outcome and that we're hearing as well as getting that grid plan approved and ultimately incorporated into a revised rate plans. So I think those are really our focus is our in the short term.

Got it understood. Thank you for that.

Our next question comes from the line of David Arcaro with Morgan Stanley. Please proceed with your question.

Speaker Change: Like I said in the longer term, we'd like to see a more constructive environment for investment and Thats going to take really engagement with all stakeholders and I think what we found is the receptivity amongst stakeholders to have the conversation to listen.

Oh, Hey, thanks, good morning.

Good morning, David.

Two.

In terms of weather normal load growth I'm, just wondering how conservative.

David They were having a really hard time hearing you.

Could you speak up a little David.

Speaker Change: And we'll figure out over time, what the best path forward is to to achieving the result, we want which is a more constructive environment for investment, which again we believe.

Hey, how is that sorry about that.

Oh.

Good good.

Just in terms of weather normal load growth I was wondering how conservative the outlook is that you're presenting here is there any possibility for acceleration either from any manufacturing activity or data center.

Speaker Change: <unk> lay in the best interest of customers communities and the achievement of the state's policy goals.

Speaker Change: Got it understood. Thank you for that.

Activity that youre seeing or otherwise.

Yes, let me start off and then certainly Marty can add as well I think I tried to provide a little color in the opening remarks, when you look at.

Speaker Change: Our next question comes from the line of David Arcaro with Morgan Stanley. Please proceed with your question.

Oh, Hey, thanks, good morning.

I think we do a good conservative job of kind of thinking about the low drove but there are some really positive things happening.

David Arcaro: Good morning, David just wanted to.

David Arcaro: In terms of weather normal load growth I'm, just wondering how conservative.

In our service territory.

Speaker Change: David They were having a really hard time hearing you.

<unk> its very strong GDP growth is strong here and I'm really talking about the kind of the greater Missouri area unemployment.

Speaker Change: Could you speak up a little David.

Speaker Change: How is that sorry about that.

Speaker Change: Started bronchial Robert Oh, good good.

Running below the National average we've had.

Robert: Just in terms of weather normal load growth I was wondering how conservative the outlook is that you're presenting here is there any possibility for acceleration either from any manufacturing activity or data center.

Think about even just 24 more specifically I mean, we got the.

Yes, GM coming back on they've added some additional load there is a couple of.

The activity that youre seeing or otherwise.

Data imaging companies that are using just a tremendous amount of energy about 2020 megawatts. I mean, these things really begin to add up and Theres just a number of longer term I think opportunities as we think about data centers and other things from an information technology standpoint that could provide some economic growth I think we do a good job, but not really baking that into this.

Speaker Change: Yes, let me start off and certainly Marty can add as well I think I tried to provide a little color in the opening remarks, I mean look I think we do a good conservative job of kind of thinking about the load ROE, but there are some really positive things happening.

Speaker Change: In our service territory in just eat.

0.2.

Speaker Change: Economically it's very strong GDP growth is strong here and I'm really talking about the kind of the greater Missouri area unemployment.

Talked about towards flat to up 5%, but im optimistic that hopefully that is.

Ends up turning out differently so Martin.

Speaker Change: Running below the National average we've had if you think about even just 24 more specifically I mean, we got the.

Yes, I would just say that look we have a broad service territory and we're deeply involved.

Speaker Change: GM coming back on they have added some additional load there is a couple of.

In throughout Illinois, and Missouri, and economic development activities and our team's support economic development expansion across both service territories.

Speaker Change: Data imaging companies that are using just a tremendous amount of energy about 2020 megawatts. I mean, these things really begin to add up and Theres just a number of longer term I think opportunities as we think about data centers and other things from an information technology standpoint that could provide some economic growth I think we do a good job, but not really baking that into this.

Say, this though and the greater St. Louis region, both in the Illinois side, the Missouri side.

I'm more excited than I've been in years with respect to.

I would say the collaborative approach to really going after.

Economic development efforts and really thinking about how we drive inclusive economic growth economic development and compete for projects.

Speaker Change: Point, we've talked about towards flat to up a half percent, but im optimistic that hopefully that is.

Speaker Change: Ended up turning out differently so Martin.

Never seen the.

The community is unified and.

Yes, I would just say that look we have a broad service territory and we're deeply involved.

Speaking with one voice and going after these things or we're seeing some wins some wins that will produce I think economic expansion.

Speaker Change: In throughout Illinois, and Missouri, and economic development activities and our team's support economic development expansion across both service territories.

Two and three years out some positive announcements as Michael said.

But I hope I hope, we are being conservative with respect to our growth projections that said as.

Speaker Change: Say, this though and the greater St. Louis region, both in the Illinois side in the Missouri side.

As we see growth, we often see also.

Speaker Change: I'm more excited than I've been in years with respect to.

Continued efforts on <unk>.

Speaker Change: I would say the collaborative approach to really going after.

Energy efficiency, both the energy efficiency, we promote but also just kind of energy efficiency in general and so try.

Speaker Change: Economic development efforts and really thinking about how we drive inclusive economic growth economic development and compete for projects.

To be realistic about our growth expectations net of those efforts.

Okay got it thanks that's helpful.

Speaker Change: Never seen the.

I was just curious what level of effort that youre seeing over the plan I'm wondering to the extent you realize some of the capex upside opportunities how that could impact the equity needs going forward.

Speaker Change: The community is unified and.

Speaker Change: Speaking with one voice and going after these things so where we're seeing some wins some wins that will produce I think economic expansion.

Speaker Change: Two and three years out some positive announcements as Michael said.

Yes.

So again, we haven't really given targets in the past I mean, I think what we've talked about is look we like our ratings, where they are <unk> they want triple B plus.

Speaker Change: But I hope I hope, we are being conservative with respect to our growth projections that said as.

Speaker Change: As we see growth, we often see also.

Grid threshold S&P is <unk> 17 at Moody's.

Speaker Change: Continued efforts.

Speaker Change: On <unk>.

We've trended obviously closer to that 2017 and again as I outlined in my opening remarks, I mean, we feel good about our balance sheet and then we come into this from a position of strength as I look out over the five years the equity needs that I outlined certainly support.

Speaker Change: Energy efficiency, both the energy efficiency, we promote but also just kind of energy efficiency in general.

Speaker Change: To be realistic about our growth expectations net of those efforts.

Speaker Change: Okay got it thanks that's helpful.

Speaker Change: I was just curious what level of effort that youre seeing over the plan I'm wondering to the extent you realize some of the capex upside opportunities how that could impact the equity needs going forward.

I believe that absolutely maintaining that.

At <unk> one.

And so maintaining something over that 17% over that over that five year period, and so and again I tried to be clear on what we did from an equity standpoint.

Yes perfect.

Speaker Change: And so again, we haven't really given targets in the past I mean, I think what we've talked about is look we thought we like our ratings, where they are <unk>. They want triple B plus that that upgrade threshold S&P is <unk> 17 at Moody's.

For 2024, we're assuming $300 million of equity we've done about 230 under our ATM program today really the remaining.

Balance that we need to do is related to our drip 401K and.

Speaker Change: We've trended obviously closer to that 2017 again as I outlined in my opening remarks, I mean, we feel good about our balance sheet and then we come into this from a position of strength as I look out over the five years the equity needs that I outlined certainly support.

Then for all the other years, it's really consistent with what we had been before so basically $600 million and again I think supports those credit ratings that I just spoke about.

Got it okay, great. Thanks for the color.

Speaker Change: I believe it actually maintaining that.

Thanks, David.

Speaker Change: <unk>.

Speaker Change: <unk> one.

Our next question comes from the line of <unk> Chopra with Evercore. Please proceed with your question.

Speaker Change: And so maintaining something over that 17% over that over that five year period, and so and again I tried to be clear on what we did from an equity standpoint for 2024, we're assuming $300 million of equity we've done about 230 under our ATM program today really the remaining.

Hey, guys. Thanks for giving me Tom I know, it's close to the hour.

Just Michael on the point about equity maybe you could just expand on this so the Capex line is up the five year Capex plan is up close to 10% a little over 10%, but the equity is kind of the same.

Speaker Change: Balance that we need to do is related to our drip 401k.

Are you kind of modeling now lesser question versus the downgrade thresholds or are there other cash flow improvements.

Speaker Change: And then for all the other years, it's really consistent with what we had been before so basically $600 million.

Might be missing.

Yeah, I don't know if theres other cash flow improvement as many again I think we are.

And again I think supports those credit ratings that I just spoke about.

Always been conservative as we think about the balance sheet and so.

Speaker Change: Got it okay, great. Thanks for the color.

Again, I feel good about what I just said David in terms of how we're thinking about the <unk> and that over time and being above that downgrade threshold of 17%.

Speaker Change: Thanks, David.

Speaker Change: Our next question comes from the line of <unk> Chopra with Evercore. Please proceed with your question.

Chopra: Hey, guys. Thanks for giving me time, I know, it's close to the hour.

We continue to obviously work with the rating agencies will be in talking to them again in the spring and so.

Chopra: Michael on the point about equity maybe you could just expand on this so the Capex plan is up the five year Capex plan is up close to 10% a little over 10%, but the equity is kind of the same.

I guess I don't have any reason to feel.

Concerned about it at this point and again I think it was it's the right thing to do and we added the capital and still feel good about.

Michael: Are you kind of modeling now lesser question worst of the downgrade thresholds or are there other cash flow improvements that.

The levels that we're at given the equity that we're issuing.

Got it and then maybe just.

Michael: Might be missing.

Couple of clarifying questions and this will be quick hopefully, but in the current five year Capex plan for solar projects that you have a settlement for in Missouri. Those are included in the plan.

Michael: Yeah, I don't know if theres other cash flow improvement as many again I think we.

Michael: Always been conservative we think about the balance sheet and so again I feel good about what I just said David in terms of how we're thinking about the <unk> and better over time and being above that downgrade threshold of 17%.

Confirm that for us and then the upside would be.

The Missouri IRB.

And then any transmission project awards from the MISO planning thinking about it correctly.

Michael: We continue to obviously work with the rating agencies will be in talking to them again in the spring and so.

Well I think I think first of all yes.

Michael: So I guess I don't have any reason to feel.

The projects that we've already have CCM for as well as the subject to the stipulation are included in the five year Capex that's shown on slide 23.

Concerned about it at this point and again I think it was it's the right thing to do and we added the capital and still feel good about the.

Michael: The levels that we're at given the equity that we're issuing.

Speaker Change: Got it and then maybe just.

And in fact, some additional capex as well for renewable projects that we anticipate to come into service by the end of 2028.

A couple of clarifying questions and this will be quick hopefully, but in the current five year Capex plan for solar projects that you have a settlement for in Missouri. Those are included in the plan.

And then the second part of your question was.

Speaker Change: Confirm that for us and then the upside would be.

It was just the traffic transmission.

Speaker Change: The Missouri IRB results and then any transmission.

So upside yes.

What we're saying is with respect to transmission. We've got the tranche one projects that have been assigned to US are awarded are included in there but.

The awards from the MISO planning thinking about it correctly.

Well I think I think first of all yes.

But what we haven't we have not included in there is any upside for potential additional wind or the transmission project that we've proposed on.

Speaker Change: The projects that we've already have CCM for as well as the subject to the stipulation are included in the five year Capex that's shown on slide 23.

Got it. Thank you so much I appreciate the time.

You bet. Thanks.

Thank you. Our final question comes from the line of Julien Dumoulin Smith with Bank of America. Please proceed with your question.

Speaker Change: And in fact, some additional capex as well for renewable projects that we anticipate to come into service by the end of 2028.

Hey, good morning. Thank you guys very much for the time I appreciate it.

Speaker Change: And then the second part of your question was.

Please me in here.

Maybe just to kick off quickly here just on the balance sheet, obviously, youre, bringing down equity slightly over the comparable period from last plan of taking our capex fairly meaningfully here I was just wanted to clarify.

Speaker Change: It was just the traffic.

Speaker Change: Transmission.

Speaker Change: So upside yes.

Speaker Change: There what we're saying is with respect to transmission. We've got the tranche one projects that have been assigned to US are awarded are included in there.

Are you relative to the required metrics can you elaborate a little bit through the cadence of the plan, how youre thinking about that.

Speaker Change: But what we haven't we have not included in there is any upside for potential additional wind or the transmission project that we've proposed on.

Alright.

Just where you're starting and ending if you will and then I've got a follow up real quickly.

Got it. Thank you so much I appreciate the time.

Yeah, Good morning, Julien it's Michael.

Speaker Change: You bet. Thanks.

Speaker Change: Thank you. Our final question comes from the line of Julien Dumoulin Smith with Bank of America. Please proceed with your question.

As I said, we had a downgrade threshold Moody's at <unk> and we have.

Historically havent talked about exactly what we're targeting but again over this five year plan. There is cushion over that 17% again I feel good about it and we have been I think done a great job sort of telegraphing, what our equity needs being very disciplined about going out and issuing that equity I think we come into this kind of super Capex environment.

Hey, good morning team. Thank you guys very much for the time I appreciate it.

Speaker Change: With me in here.

Speaker Change: Maybe just to kick off quickly here just on the balance sheet, obviously, youre, bringing down equity slightly over the comparable period from last plan up ticking capex fairly meaningfully here I just wanted to clarify just where are you relative to the required metrics can you elaborate a little bit through the cadence of the plan, how youre thinking about it.

With a very very healthy balance sheet as you know we're not we're not trying to get up to some level right, where we've been at these levels and I see us staying at that level over the five year plan.

Speaker Change: The debt.

Speaker Change: Alright.

Speaker Change: Just where you're starting and ending if you will and then I've got a follow up real quickly.

Got it so every year kind of over that 17% threshold give or take.

Speaker Change: Yeah, Good morning, Julien it's Michael.

Okay.

Michael: As I said, we had a downgrade threshold on Moody's at <unk>, and we have historically havent talked about exactly what we're targeting but again over the five year plan. There is cushion over that 17% again I feel good about it and we have been I think done a great job of sort of telegraphing, what our equity needs being very.

Five year.

Over the five year plan over.

Over 17% and again look as we have frequent conversation that will go in again and I have another conversation with them.

Wonderful and just to clarify this on the Missouri Capex I mean, obviously, that's a nice uptick there.

And obviously you haven't necessarily decided when you finally case, but how do you think about just the clarity that you have on that spend right. When you think about having visibility tied to specific projects that are likely to be approved or what have you I just wanted to understand the level of confidence that there is in this capex in Missouri, obviously, youre, putting a lot more in.

Michael: Disciplined about going out and issuing that equity I think we come into this kind of super Capex environment with a very very healthy balance sheet. As you know we're not we're not trying to get up to some level right, where we've been at these levels and I see us staying at that level over the five year plan.

Got it so every year kind of over that 17% threshold give or take.

Theyre just wanted to understand what are the key parameters what are the key inputs that youre thinking about and saying look we've got confidence on the totality of that freight what pieces arent necessarily approved perhaps.

Michael: Yes.

Michael: Five year.

Michael: Over the five year plan yet.

Michael: Over 17% and again look as we have frequent conversation that will go in again and I have another conversation with them.

Well look I think one of the things that you could look at.

Julian as every year at this time, we make a filing in Missouri were very transparent and lay out what our planned capital expenditures are how we're justifying those thinking about those where they plan to go and so youll see that actually.

Speaker Change: Wonderful and just to clarify this on the Missouri Capex I mean, obviously, that's a nice uptick there.

Speaker Change: And obviously you haven't necessarily decided when you finally case, but how do you think about just the.

Speaker Change: The clarity that you have on that spend right. When you think about having visibility tied to specific projects that are likely to be approved or what have you I just wanted to understand the level of confidence that there is in this capex in Missouri, obviously, youre, putting a lot more in there just wanted to understand what are the key parameters. What are the key inputs that youre thinking about and saying look we have.

Today come in from Ameren, Missouri. It happens every year at the same time and then it's subject to.

Public discussion about the plans and where they're going.

I would say this in many ways you look at misery, it's really as I said earlier, it's really.

To align our investment with the things that were NRI ERP last fall. So we do plan to invest in at 800 megawatt simple cycle.

Speaker Change: Confidence on the totality of that right what pieces arent necessarily approved perhaps.

Speaker Change: Well look I think one of the things you could look at.

<unk> would you plan to continue to invest in our dispatch where resources, which is both our coal fired energy centers to get them through to.

Speaker Change: Julian as every year at this time, we make a filing in Missouri were very transparent and lay out what our planned capital expenditures are how we're justify those thinking about those where they plan to go and so youll see that actually.

The retirement, making sure that they are reliable and efficient making sure that we continue to invest in our nuclear facility. So we've got a lot of dispatch for resources, there and then as it relates to the ERP also we had planned investments in renewables.

Speaker Change: Today coming from Ameren, Missouri. It happens every year at the same time and are subject to.

Over this five year period, and battery storage as well and so those are included in the plan.

Speaker Change: Public discussion about the plans and where they're going.

Speaker Change: I would say this in many ways you'd look at misery, it's really as I said earlier, it's really.

I mentioned earlier with respect to renewables.

To align our investment, but the things that were NRI ERP last fall. So we do plan to invest in at 800 megawatt simple cycle.

So we got a positive order out of the commission on a couple of Ccm's last year.

We've got four that are pending right now that we believe will be filing the stipulated settlement here in the short term.

<unk> would you plan to continue to invest in our dispatch where resources, which is both our coal fired energy centers to get them through to.

If you would look to commission approval, but those would be subject to commission approval.

And then with the other planned investments in renewables again in accordance with that ERP and then with respect to the remainder of the stand it really has to do with continued investment in our distribution infrastructure.

Speaker Change: The retirement, making sure that they are reliable and efficient making sure that we continue to invest in our nuclear facility. So we've got a lot of dispatch for resources, there and that is related to the ERP also we had planned investments in renewables.

Our customers are seeing a lot of benefits today as I mentioned in our prepared remarks, especially when we have severe weather events, we're seeing the infrastructure investments that we're making.

Some may over this five year period and in battery storage as well and so those are included in the plan.

Blake you are stronger.

Speaker Change: I mentioned earlier with respect to renewables.

<unk> Tolar Poles.

Smart automation.

Speaker Change: And we got a positive order out of the commission on a couple of Ccm's last year.

Distribution automation our system, new Substations, we're really seeing the benefit of that in terms of reduced frequency of outage I mentioned earlier top quartile in terms of SAP.

We've got four that are pending right now that we believe will be filing a stipulated settlement here in the short term.

Speaker Change: We would look to commission approval, but those would be some objected commission approval.

Safety measures or frequency of outages. This year, so seeing a lot of benefits from that but you know we've only really been at that since 2018, and there's a tremendous amount of investments still to be made really decades of investment still to be made in terms of.

And then with the other planned investments in renewables again in accordance with that IRB and then with respect to the remainder of the stand it really has to do with continued investment in our distribution infrastructure.

Speaker Change: Our customers are seeing a lot of benefits today as I mentioned in our prepared remarks, especially when we have severe weather events, we're seeing the infrastructure investments that we're making.

Not only replacing ageing infrastructure, but really modernizing that infrastructure to make sure that.

The kind of benefits that we're seeing in terms of reduced frequency and duration of outages are spread across our service territory in Missouri. So again all of that is subject to.

Speaker Change: Blake you are stronger.

Speaker Change: <unk> Tolar Poles.

Speaker Change: Smart automation.

Speaker Change: Distribution automation our system, new Substations, we're really seeing the benefit of that in terms of reduced frequency of outage I mentioned earlier at top quartile in terms of safe.

Further.

Further planning it.

Et cetera, but I think again I'd point, you to today's filing in Missouri, which really lays out all the specifics in terms of the plans we have to invest in the justification and with that I'll stop.

Safety measures or frequency of outages year, so seeing a lot of benefits from that but you know we've only really been at that since 2018, and there's a tremendous amount of investments still to be made really decades of investment still to be made in terms of.

Alright, great. Thank you guys I'll keep it there all the best Thanks Julien.

Thank you Mr lines, I would now like to turn the floor back over to you for closing comments.

Speaker Change: Not only are replacing ageing infrastructure, but really modernizing that infrastructure to make sure that.

Yeah, well, thank you and I want to thank everybody for their <unk>.

Speaker Change: The kind of benefits that we're seeing in terms of reduced frequency and duration of outages are spread across our service territory in Missouri. So again all of that is subject to.

Participation today there are questions. We thank you for your investment and your confidence in our Ameren team.

We're going to work to build on them.

Delivering reliable safe and affordable energy for our customers and communities across both Missouri, and Illinois, So look everybody be safe and we look forward to seeing many of you at conferences over the next few weeks bye bye.

Speaker Change: Further a further planning and et cetera, but I think again I'd point, you to today's filing in Missouri, which really lays out all the specifics in terms of the plans we have to invest in the justification and with that I'll stop.

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.

Alright, great. Thank you guys I'll keep it there all the best Thanks Julien.

Julien: Thank you Mr lines, I would now like to turn the floor back over to you for closing comments.

Speaker Change: Yeah, well, thank you and I want to thank everybody for their.

Speaker Change: Participation today there are questions. We thank you for your investment and your confidence in our Ameren team, we're going to work to build on them.

Speaker Change: Delivering reliable safe and affordable energy for our customers and communities across both Missouri, and Illinois, So everybody be safe and we look forward to seeing many of you at conferences over the next few weeks.

Speaker Change: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.