Skip to content
AnalystLens

AMEREN CORP Annual Report, Year Ended Dec 31, 1999

Filing Date
Filed March 30, 2000
Period End
December 31, 1999
Security
AEE
In the record · 2016–202610-K1110-Q328-K155

AEE filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 155 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Material agreement8-K · Aug ’19Aug ’19
  3. Leadership change8-K · Oct ’21Oct ’21
  4. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed March 30, 2000. Cited figures are marked; the original filing is the authoritative source.

Ameren Corporation (NYSE: AEE) filed its 10-K for fiscal 1999 on March 30, 2000.

It is a PUHCA-registered holding company whose two main utilities are AmerenUE (largest electric utility in Missouri, serving about 2.6 million people in Missouri and Illinois) and AmerenCIPS (central and southern Illinois). In 1999, 1998 and 1997, earnings were $385 milliona ($2.81 per share), $386 million ($2.82) and $335 million ($2.44). Results were flat year over year, with a $31 million (23 cent per share) fourth-quarter charge for terminating high-cost coal contracts partly offset by a $9 million gain from a Missouri regulatory order.

Revenue rose 6% to $3.52 billionb, driven largely by a 60% jump in interchange (wholesale) sales through AmerenEnergy. The central investment story is the restructuring of Illinois electric supply. AmerenCIPS is transferring its generating plants (about $600 million net book value) to a new nonregulated subsidiary, Ameren Energy Generating Company, expected to start operating around May 2000.

Ameren plans about 2,700 MW of new combustion turbine peaking capacity at a cost of roughly $1.2 billionc, and has a five-year construction budget of $3.3 billion for 2000 through 2004. The coal contract terminations are estimated to save $183 million pretax through 2010. Against this, the filing flags significant risks: a pending Missouri appeal over a December 1999 MoPSC order that reduces customer credits, uncertain Missouri restructuring, and potential NOx and ozone compliance costs of $250 to $300 million.

Financial position is solid but leveraged to capital spending. Operating cash flow was $918 milliond in 1999, against $571 million of construction spending. Common dividends were $348.5 million, a 90% payout ratio, with a quarterly rate of 63.5 cents.

Long-term debt rose to $2.45 billion. Labor is a near-term issue: about 2,000 employees at several IBEW locals are working under the company's last offer after contracts expired in 1999. The filing is a wrapper that incorporates most financial detail from the 1999 Annual Report (Exhibit 13).

02—Key points

Key Highlights

  1. EPS of $2.81 in 1999 versus $2.82 in 1998, with net income of $385 million; the fourth quarter included a $31 million (23 cents per share) charge for coal contract terminations.
  2. Revenue grew 6% to $3.52 billion, led by a 60% increase in interchange sales from AmerenEnergy's wholesale marketing, while weather-sensitive retail sales fell.
  3. Illinois restructuring: AmerenCIPS generating assets (about $600 million net book value) move to a nonregulated subsidiary expected to be operational around May 2000, with the regulatory approvals received except for the FERC exempt wholesale generator determination.
  4. Capital program of $749 million for 2000 and $3.3 billion for 2000-2004, including about $1.2 billion for roughly 2,700 MW of new combustion turbines, funded with operating cash flow of $918 million and debt.
  5. Coal contract terminations are estimated to save $183 million pretax through 2010 (about $66 million over the next three years).
  6. Dividend payout was 90% of 1999 earnings, with a quarterly dividend of 63.5 cents declared in February 2000.
  7. Key risks include a Missouri appeal of the MoPSC's December 1999 credit order, uncertain Missouri restructuring, $250-300 million of NOx compliance capex, and labor negotiations affecting about 2,000 employees.

03—Questions

Frequently Asked Questions

  1. How did Ameren perform financially in 1999?

    Ameren earned $385 million, or $2.81 per share, versus $386 million ($2.82) in 1998. Revenue rose to $3.52 billion. Earnings were held down by a $31 million fourth-quarter charge for coal contract terminations, and partly offset by a $9 million benefit from a Missouri regulatory order. The return on average common equity was 12.56%.

  2. What is the biggest strategic change underway at Ameren?

    Illinois electric restructuring. AmerenCIPS is moving its generating plants into a nonregulated subsidiary, Ameren Energy Generating Company, expected to start in about May 2000. Ameren is also building roughly 2,700 MW of new peaking capacity at about $1.2 billion, and its AmerenEnergy marketing arm is expanding wholesale sales. The strategy aims to compete in the Illinois retail market, where customers begin choosing suppliers from October 1999.

  3. What are the main risks to the dividend and earnings outlook?

    The dividend payout is high at 90% of earnings, so weaker earnings would pressure it. Other risks include the outcome of AmerenUE's appeal of the Missouri credit order, uncertainty about Missouri restructuring, rising capital needs for environmental compliance (NOx regulations could cost $250-300 million), and potential impairment of generation assets if competition erodes margins. Management says it cannot predict the ultimate impact of these items.

  4. Are there labor or regulatory issues investors should watch?

    Yes. About 2,000 employees at several IBEW locals have worked under the company's final offer since March 6, 2000, after their contracts expired in 1999, and the company cannot predict the outcome. In Missouri, AmerenUE is appealing the MoPSC's December 1999 order, and a proposed 2000 gas rate increase of about $12 million awaits a decision by January 2001. Management believes none of these will have a material adverse effect.

04—Continue

← View all 10-K filings