XML 52 R13.htm IDEA: XBRL DOCUMENT
v3.22.2

Derivative Financial Instruments | 6 Months Ended
--- | ---
Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS We use derivatives to manage the risk of changes in market prices for natural gas, power, and uranium, as well as the risk of changes in rail transportation surcharges through fuel oil hedges. Such price fluctuations may cause the following: •an unrealized appreciation or depreciation of our contracted commitments to purchase or sell when purchase or sale prices under the commitments are compared with current commodity prices; •market values of natural gas and uranium inventories that differ from the cost of those commodities in inventory; •actual cash outlays for the purchase of these commodities that differ from anticipated cash outlays; and •actual off-system sales revenues that differ from anticipated revenues. The derivatives that we use to hedge these risks are governed by our risk management policies for forward contracts, futures, options, and swaps. Our net positions are continually assessed within our structured hedging programs to determine whether new or offsetting transactions are required. The goal of the hedging program is generally to mitigate financial risks while ensuring that sufficient volumes are available to meet our requirements. Contracts we enter into as part of our risk management program may be settled financially, settled by physical delivery, or net settled with the counterparty. All contracts considered to be derivative instruments are required to be recorded on the balance sheet at their fair values, unless the NPNS exception applies. Many of our physical contracts, such as our purchased power contracts, qualify for the NPNS exception to derivative accounting rules. The revenue or expense on NPNS contracts is recognized at the contract price upon physical delivery. The following disclosures exclude NPNS contracts and other non-derivative commodity contracts that are accounted for under the accrual method of accounting. If we determine that a contract meets the definition of a derivative and is not eligible for the NPNS exception, we review the contract to determine whether the resulting gains or losses qualify for regulatory deferral. Derivative contracts that qualify for regulatory deferral are recorded at fair value, with changes in fair value recorded as regulatory assets or liabilities in the period in which the change occurs. We believe derivative losses and gains deferred as regulatory assets and liabilities are probable of recovery, or refund, through future rates charged to customers. Regulatory assets and liabilities are amortized to operating income as related losses and gains are reflected in rates charged to customers. Therefore, gains and losses on these derivatives have no effect on operating income. As of June 30, 2022, and December 31, 2021, all contracts that met the definition of a derivative and were not eligible for the NPNS exception received regulatory deferral. Cash flows for all derivative financial instruments are classified in cash flows from operating activities. The following table presents open gross commodity contract volumes by commodity type for derivative assets and liabilities as of June 30, 2022, and December 31, 2021. As of June 30, 2022, these contracts extended through October 2024, October 2027, May 2032 and March 2024 for fuel oils, natural gas, power and uranium, respectively:
| Quantity (in millions)
| June 30, 2022 | December 31, 2021
Commodity | Ameren Missouri | Ameren Illinois | Ameren | Ameren Missouri | Ameren Illinois | Ameren
Fuel oils (in gallons) | 21 |  | — |  | 21 |  | 30 |  | — |  | 30 |
Natural gas (in mmbtu) | 44 |  | 152 |  | 196 |  | 35 |  | 144 |  | 179 |
Power (in MWhs) | 3 |  | 6 |  | 9 |  | 6 |  | 6 |  | 12 |
Uranium (pounds in thousands) | 496 |  | — |  | 496 |  | 586 |  | — |  | 586 |
The following table presents the carrying value and balance sheet location of all derivative commodity contracts, none of which were designated as hedging instruments, as of June 30, 2022, and December 31, 2021:
|  |  | June 30, 2022 | December 31, 2021
| Balance Sheet Location |  | Ameren Missouri |  |  | Ameren Illinois |  |  | Ameren |  |  |  | Ameren Missouri |  |  | Ameren Illinois |  |  | Ameren
Fuel oils | Mark-to-market derivative assets | $ | 22 |  |  | $ | — |  |  | $ | 22 |  |  |  | $ | 8 |  |  | $ | — |  |  | $ | 8 |
| Other assets |  | 8 |  |  |  | — |  |  |  | 8 |  |  |  |  | 5 |  |  |  | — |  |  |  | 5 |
Natural gas | Mark-to-market derivative assets |  | 14 |  |  |  | 59 |  |  |  | 73 |  |  |  |  | 7 |  |  |  | 28 |  |  |  | 35 |
| Other assets |  | 14 |  |  |  | 27 |  |  |  | 41 |  |  |  |  | 5 |  |  |  | 13 |  |  |  | 18 |
Power | Mark-to-market derivative assets |  | 50 |  |  |  | 9 |  |  |  | 59 |  |  |  |  | 23 |  |  |  | — |  |  |  | 23 |
| Other assets |  | — |  |  |  | 1 |  |  |  | 1 |  |  |  |  | — |  |  |  | — |  |  |  | — |
Uranium | Mark-to-market derivative assets |  | 3 |  |  |  | — |  |  |  | 3 |  |  |  |  | — |  |  |  | — |  |  |  | — |
| Other assets |  | 1 |  |  |  | — |  |  |  | 1 |  |  |  |  | 1 |  |  |  | — |  |  |  | 1 |
| Total assets | $ | 112 |  |  | $ | 96 |  |  | $ | 208 |  |  |  | $ | 49 |  |  | $ | 41 |  |  | $ | 90 |
Natural gas | Mark-to-market derivative liabilities |  | 4 |  |  |  | (a) |  |  | (a) |  |  |  | 2 |  |  |  | (a) |  |  | (a)
| Other current liabilities |  | — |  |  |  | 7 |  |  |  | 11 |  |  |  |  | — |  |  |  | 6 |  |  |  | 8 |
| Other deferred credits and liabilities |  | 2 |  |  |  | 4 |  |  |  | 6 |  |  |  |  | 1 |  |  |  | 2 |  |  |  | 3 |
Power | Mark-to-market derivative liabilities |  | 141 |  |  |  | (a) |  |  | (a) |  |  |  | 50 |  |  |  | (a) |  |  | (a)
| Other current liabilities |  | — |  |  |  | 1 |  |  |  | 142 |  |  |  |  | — |  |  |  | 9 |  |  |  | 59 |
| Other deferred credits and liabilities |  | 24 |  |  |  | 53 |  |  |  | 77 |  |  |  |  | 23 |  |  |  | 108 |  |  |  | 131 |
Uranium | Mark-to-market derivative liabilities |  | — |  |  |  | (a) |  |  | (a) |  |  |  | 1 |  |  |  | (a) |  |  | (a)
| Other current liabilities |  | — |  |  |  | — |  |  |  | — |  |  |  |  | — |  |  |  | — |  |  |  | 1 |
| Total liabilities | $ | 171 |  |  | $ | 65 |  |  | $ | 236 |  |  |  | $ | 77 |  |  | $ | 125 |  |  | $ | 202 |
(a)Balance sheet line item not applicable to registrant. We believe that entering into master netting arrangements or similar agreements mitigates the level of financial loss that could result from default by allowing net settlement of derivative assets and liabilities. These master netting arrangements allow the counterparties to net settle sale and purchase transactions. Further, collateral requirements are calculated at the master netting arrangement or similar agreement level by counterparty. The following table provides the recognized gross derivative balances and the net amounts of those derivatives subject to an enforceable master netting arrangement or similar agreement as of June 30, 2022, and December 31, 2021:
|  |  |  | Gross Amounts Not Offset in the Balance Sheet |  |
Commodity Contracts Eligible to be Offset |  | Gross Amounts Recognized in the Balance Sheet |  | Derivative Instruments |  | Cash Collateral Received/Posted(a) |  | Net Amount
June 30, 2022 |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |
Ameren Missouri |  | $ | 112 |  |  | $ | 36 |  |  | $ | 15 |  |  | $ | 61 |
Ameren Illinois |  | 96 |  |  | 16 |  |  | 15 |  |  | 65 |
Ameren |  | $ | 208 |  |  | $ | 52 |  |  | $ | 30 |  |  | $ | 126 |
Liabilities: |  |  |  |  |  |  |  |
Ameren Missouri |  | $ | 171 |  |  | $ | 36 |  |  | $ | 127 |  |  | $ | 8 |
Ameren Illinois |  | 65 |  |  | 16 |  |  | — |  |  | 49 |
Ameren |  | $ | 236 |  |  | $ | 52 |  |  | $ | 127 |  |  | $ | 57 |
December 31, 2021 |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |
Ameren Missouri |  | $ | 49 |  |  | $ | 15 |  |  | $ | — |  |  | $ | 34 |
Ameren Illinois |  | 41 |  |  | 4 |  |  | — |  |  | 37 |
Ameren |  | $ | 90 |  |  | $ | 19 |  |  | $ | — |  |  | $ | 71 |
Liabilities: |  |  |  |  |  |  |  |
Ameren Missouri |  | $ | 77 |  |  | $ | 15 |  |  | $ | 47 |  |  | $ | 15 |
Ameren Illinois |  | 125 |  |  | 4 |  |  | — |  |  | 121 |
Ameren |  | $ | 202 |  |  | $ | 19 |  |  | $ | 47 |  |  | $ | 136 |
(a)Cash collateral received reduces gross asset balances and is included in “Other current liabilities” and “Other deferred credits and liabilities” on the balance sheet. Cash collateral posted reduces gross liability balances and is included in “Other current assets” and “Other assets” on the balance sheet. Credit Risk In determining our concentrations of credit risk related to derivative instruments, we review our individual counterparties and categorize each counterparty into groupings according to the primary business in which each engages. As of June 30, 2022, if counterparty groups were to fail completely to perform on contracts, Ameren, Ameren Missouri, and Ameren Illinois’ maximum exposure related to derivative assets, predominantly from financial institutions, was $172 million, $83 million, and $89 million, respectively. The potential loss on counterparty exposures may be reduced or eliminated by the application of master netting arrangements or similar agreements and collateral held. As of June 30, 2022, the potential loss after consideration of the application of master netting arrangements or similar agreements and collateral held for Ameren, Ameren Missouri, and Ameren Illinois was $108 million, $42 million, and $66 million, respectively. Certain of our derivative instruments contain collateral provisions tied to the Ameren Companies’ credit ratings. If our credit ratings were downgraded below investment grade, or if a counterparty with reasonable grounds for uncertainty regarding our ability to satisfy an obligation requested adequate assurance of performance, additional collateral postings might be required. The additional collateral required is the net liability position allowed under master netting arrangements or similar agreements, assuming (1) the credit risk-related contingent features underlying these arrangements were triggered and (2) those counterparties with rights to do so requested collateral. The following table presents, as of June 30, 2022, the aggregate fair value of all derivative instruments with credit risk-related contingent features in a gross liability position, the cash collateral posted, and the aggregate amount of additional collateral that counterparties could require:
| Aggregate Fair Value of Derivative Liabilities(a) |  | Cash Collateral Posted |  | Potential Aggregate Amount of Additional Collateral Required(b)
Ameren Missouri | $ | 76 |  |  | $ | 29 |  |  | $ | 12 |
Ameren Illinois | 12 |  |  | — |  |  | 4 |
Ameren | $ | 88 |  |  | $ | 29 |  |  | $ | 16 |
(a)Before consideration of master netting arrangements or similar agreements. (b)As collateral requirements with certain counterparties are based on master netting arrangements or similar agreements, the aggregate amount of additional collateral required to be posted is determined after consideration of the effects of such arrangements.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration