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Fair Value Measurements
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use various methods to determine fair value, including market, income, and cost approaches. With these approaches, we adopt certain assumptions that market participants would use in pricing the asset or liability, including assumptions about market risk or the risks inherent in the inputs to the valuation. Inputs to valuation can be readily observable, market-corroborated, or unobservable. We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Authoritative accounting guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. All financial assets and liabilities carried at fair value are classified and disclosed in one of the following three hierarchy levels:
Level 1 (quoted prices in active markets for identical assets or liabilities): Inputs based on quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities are primarily exchange-traded derivatives, cash and cash equivalents, and listed equity securities.
The market approach is used to measure the fair value of equity securities held in Ameren Missouri’s nuclear decommissioning trust fund. Equity securities in this fund are representative of the S&P 500 index, excluding securities of Ameren Corporation, owners and/or operators of nuclear power plants, and the trustee and investment managers. The S&P 500 index comprises stocks of large-capitalization companies.
Level 2 (significant other observable inputs): Market-based inputs corroborated by third-party brokers or exchanges based on transacted market data. Level 2 assets and liabilities include certain assets held in Ameren Missouri’s nuclear decommissioning trust fund, including United States Treasury and agency securities, corporate bonds and other fixed-income securities, and certain over-the-counter derivative instruments, including natural gas and financial power transactions.
Fixed income securities are valued by using prices from independent industry-recognized data vendors who provide values that are either exchange-based or matrix-based. The fair value measurements of fixed-income securities classified as Level 2 are based on inputs other than quoted prices that are observable for the asset or liability. Examples are matrix pricing, market corroborated pricing, and inputs such as yield curves and indices.
Derivative instruments classified as Level 2 are valued by corroborated observable inputs, such as pricing services or prices from similar instruments that trade in liquid markets. Our development and corroboration process entails obtaining multiple quotes or prices from outside sources. To derive our forward view to price our derivative instruments at fair value, we average the bid/ask spreads to the midpoints. Additionally, a review of all sources is performed to identify any anomalies or potential errors. Further, we consider the volume of transactions on certain trading platforms in our reasonableness assessment of the averaged midpoints. The value of natural gas derivative contracts is based upon exchange closing prices without significant unobservable adjustments. The value of power derivative contracts is based upon exchange closing prices or the use of multiple forward prices provided by third parties.
Level 3 (significant other unobservable inputs): Unobservable inputs that are not corroborated by market data. Level 3 assets and liabilities are valued by internally developed models and assumptions or methodologies that use significant unobservable inputs. Level 3 assets and liabilities include derivative instruments that trade in less liquid markets, where pricing is largely unobservable. We value Level 3 instruments by using pricing models with inputs that are often unobservable in the market, such as certain internal assumptions, quotes or prices from outside sources not supported by a liquid market, or trend rates.
We perform an analysis each quarter to determine the appropriate hierarchy level of the assets and liabilities subject to fair value measurements. Financial assets and liabilities are classified in their entirety according to the lowest level of input that is significant to the fair value measurement. All assets and liabilities whose fair value measurement is based on significant unobservable inputs are classified as Level 3.
We consider nonperformance risk in our valuation of derivative instruments by analyzing our own credit standing and the credit standing of our counterparties, and by considering any credit enhancements (e.g., collateral). Included in our valuation, and based on current market conditions, is a valuation adjustment for counterparty default derived from market data such as the price of credit default swaps, bond yields, and credit ratings. No material gains or losses related to valuation adjustments for counterparty default risk were recorded at Ameren, Ameren Missouri, or Ameren Illinois in 2023, 2022, or 2021. At December 31, 2023 and 2022, the counterparty default risk valuation adjustment related to derivative contracts was immaterial for Ameren, Ameren Missouri, and Ameren Illinois.
The following table sets forth, by level within the fair value hierarchy, our assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022:
December 31, 2023December 31, 2022
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Ameren Missouri
Derivative assets – commodity contracts:
Fuel oils$2 $— $— $2 $16 $— $— $16 
Natural gas— 3 — 3 1 15 — 16 
Power— — 5 5 — — 14 14 
Uranium— — 9 9 — — 3 3 
Total derivative assets – commodity contracts$2 $3 $14 $19 $17 $15 $17 $49 
Nuclear decommissioning trust fund:
Equity securities:
U.S. large capitalization$787 $— $— $787 $618 $— $— $618 
Debt securities:
U.S. Treasury and agency securities— 150 — 150 — 137 — 137 
Corporate bonds— 136 — 136 — 122 — 122 
Other— 68 — 68 — 70 — 70 
Total nuclear decommissioning trust fund$787 $354 $— $1,141 
(a)
$618 $329 $— $947 
(a)
Total Ameren Missouri$789 $357 $14 $1,160 $635 $344 $17 $996 
Ameren Illinois
Derivative assets – commodity contracts:
Natural gas$— $1 $2 $3 $1 $28 $5 $34 
Power— — — — — — 6 6 
Total Ameren Illinois$— $1 $2 $3 $1 $28 $11 $40 
Ameren
Derivative assets – commodity contracts(b)
$2 $4 $16 $22 $18 $43 $28 $89 
Nuclear decommissioning trust fund(c)
787 354 — 1,141 
(a)
618 329 — 947 
(a)
Total Ameren$789 $358 $16 $1,163 $636 $372 $28 $1,036 
Liabilities:
Ameren Missouri
Derivative liabilities – commodity contracts:
Fuel oils$2 $— $— $2 $— $— $— $— 
Natural gas$— $19 $3 $22 $— $6 $3 $9 
Power— — 1 1 57 — 2 59 
Total Ameren Missouri$2 $19 $4 $25 $57 $6 $5 $68 
Ameren Illinois
Derivative liabilities – commodity contracts:
Natural gas$4 $60 $11 $75 $— $19 $10 $29 
Power— — 68 68 — — 39 39 
Total Ameren Illinois$4 $60 $79 $143 $— $19 $49 $68 
Ameren
Derivative liabilities – commodity contracts(b)
$6 $79 $83 $168 $57 $25 $54 $136 
(a)Balance excludes $9 million and $11 million of cash and cash equivalents, receivables, payables, and accrued income, net for December 31, 2023 and 2022, respectively.
(b)See the Ameren Missouri and Ameren Illinois sections of the table for a breakout of the fair value of Ameren’s derivative assets and liabilities by type of commodity.
(c)See the Ameren Missouri section of the table for a breakout of Ameren’s nuclear decommissioning trust fund by investment type.
See Note 10 – Retirement Benefits for tables that set forth, by level within the fair value hierarchy, Ameren’s pension and postretirement plan assets as of December 31, 2023 and 2022.
Level 3 fuel oils, natural gas and uranium derivative contract assets and liabilities measured at fair value on a recurring basis were immaterial for all periods presented. The following table presents the fair value reconciliation of Level 3 power derivative contract assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2023 and 2022:
20232022
Ameren
Missouri		Ameren
Illinois		AmerenAmeren
Missouri		Ameren
Illinois		Ameren
Beginning balance at January 1$12 $(33)$(21)$(15)$(117)$(132)
Realized and unrealized gains (losses) included in regulatory assets/liabilities1 (48)(47)(45)92 47 
Settlements(9)13 4 72 (8)64 
Ending balance at December 31$4 $(68)$(64)$12 $(33)$(21)
Change in unrealized gains (losses) related to assets/liabilities held at December 31$4 $(36)$(32)$12 $75 $87 
All gains or losses related to our Level 3 derivative commodity contracts are expected to be recovered or returned through customer rates; therefore, there is no impact to either net income or other comprehensive income resulting from changes in the fair value of these instruments.
The following table describes the valuation techniques and significant unobservable inputs utilized for the fair value of our Level 3 power derivative contract assets and liabilities as of December 31, 2023 and 2022:
Fair Value
Weighted Average(b)
CommodityAssetsLiabilitiesValuation Technique(s)
Unobservable Input(a)
Range
2023
Power(c)
$5 $(69)Discounted cash flowAverage forward peak and off-peak pricing – forwards/swaps ($/MWh)
31 – 65
43
Nodal basis ($/MWh)
(8) – (1)
(5)
2022
Power(d)
$20 $(41)Discounted cash flowAverage forward peak and off-peak pricing – forwards/swaps ($/MWh)
38 – 89
51
Nodal basis ($/MWh)
(10) – (1)
(4)
Trend rate (%)
0– 1
0
(a)Generally, significant increases (decreases) in these inputs in isolation would result in a significantly higher (lower) fair value measurement.
(b)Unobservable inputs were weighted by relative fair value.
(c)Valuations use visible forward prices adjusted for nodal-to-hub basis differentials.
(d)Valuations through 2031 use visible forward prices adjusted for nodal-to-hub basis differentials. Valuations beyond 2031 use a trend rate factor and are similarly adjusted for nodal-to-hub basis differentials.
The following table sets forth, by level within the fair value hierarchy, the carrying amount and fair value of financial assets and liabilities disclosed, but not carried, at fair value as of December 31, 2023 and 2022:
Carrying
Amount		Fair Value
Level 1Level 2Level 3Total
December 31, 2023
Ameren:
Cash, cash equivalents, and restricted cash$272 $272 $— $— $272 
Short-term debt536 — 536 — 536 
Long-term debt (including current portion)15,970 
(a)
— 14,366 467 
(b)
14,833 
Ameren Missouri:
Cash, cash equivalents, and restricted cash$10 $10 $— $— $10 
Short-term debt170 — 170 — 170 
Borrowings from money pool306 — 306 — 306 
Long-term debt (including current portion)6,341 
(a)
— 5,800 — 5,800 
Ameren Illinois:
Cash, cash equivalents, and restricted cash$234 $234 $— $— $234 
Short-term debt366 — 366 — 366 
Borrowings from money pool135 — 135 — 135 
Long-term debt (including current portion)5,232 
(a)
— 4,867 — 4,867 
December 31, 2022
Ameren:
Cash, cash equivalents, and restricted cash$216 $216 $— $— $216 
Investments in industrial development revenue bonds(c)
240 — 240 — 240 
Short-term debt1,070 — 1,070 — 1,070 
Long-term debt (including current portion)(c)
14,025 
(a)
— 11,989 464 
(b)
12,453 
Ameren Missouri:
Cash, cash equivalents, and restricted cash$13 $13 $— $— $13 
Investments in industrial development revenue bonds(c)
240 — 240 — 240 
Short-term debt329 — 329 — 329 
Long-term debt (including current portion)(c)
6,086 
(a)
— 5,365 — 5,365 
Ameren Illinois:
Cash, cash equivalents, and restricted cash$191 $191 $— $— $191 
Short-term debt264 — 264 — 264 
Long-term debt (including current portion)4,835 
(a)
— 4,320 — 4,320 
(a)Included unamortized debt issuance costs, which were excluded from the fair value measurement, of $111 million, $45 million, and $47 million for Ameren, Ameren Missouri, and Ameren Illinois, respectively, as of December 31, 2023. Included unamortized debt issuance costs, which were excluded from the fair value measurement, of $99 million, $41 million, and $44 million for Ameren, Ameren Missouri, and Ameren Illinois, respectively, as of December 31, 2022.
(b)The Level 3 fair value amount consists of ATXI’s senior unsecured notes.
(c)Ameren and Ameren Missouri had investments in industrial development revenue bonds, classified as held-to-maturity and recorded in “Investments in industrial development revenue bonds,” as of December 31, 2022, respectively, that were equal to the finance obligation for the Audrain CT energy center. As of December 31, 2022, the carrying amount of the investments in industrial development revenue bonds and the finance obligations approximated fair value. The financing obligation for the Audrain CT Energy Center was settled in January 2023. See Note 5 – Long-term Debt and Equity Financings for additional information on these agreements.