-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LRBERc0LsM//4R71k/hkS+dxNaFCvSCo1zKtolQqyFGnRfbshRzpmlPUsIaS9R+E Vs21sPFxIrVadrH+CicQiw== 0001002910-99-000026.txt : 19990511 0001002910-99-000026.hdr.sgml : 19990511 ACCESSION NUMBER: 0001002910-99-000026 CONFORMED SUBMISSION TYPE: U-13-60 PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990510 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMEREN CORP CENTRAL INDEX KEY: 0001002910 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 431723446 STATE OF INCORPORATION: MO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U-13-60 SEC ACT: SEC FILE NUMBER: 049-00139 FILM NUMBER: 99615697 BUSINESS ADDRESS: STREET 1: 1901 CHOUTEAU AVE CITY: ST LOUIS STATE: MO ZIP: 63103 BUSINESS PHONE: 3146213222 MAIL ADDRESS: STREET 1: 1901 CHOUTEAU AVE CITY: ST LOUIS STATE: MO ZIP: 63103 U-13-60 1 FORM U-13-60 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM U-13-60 ANNUAL REPORT FOR THE PERIOD Beginning January 1, 1998 and Ending December 31, 1998 TO THE U.S. SECURITIES AND EXCHANGE COMMISSION OF Ameren Services Company A Subsidiary Service Company Date of Incorporation November 4, 1997 If not Incorporated, Date of Organization State or Sovereign Power under which Incorporated or Organized Missouri Location of Principal Executive Offices of Reporting Company St. Louis Name, title, and address of officer to whom correspondence concerning this report should be addressed: Warner Baxter Vice President & Controller One Ameren Plaza, 1901 Chouteau (Name)(Title) (Address) Name of Principal Holding Company Whose Subsidiaries are served by Reporting Company: Ameren Corporation 1 of 27 pages 2 of 27 pages (Blank) INSTRUCTIONS FOR USE OF FORM U-13-60 1. Time of Filing. Rule 94 provides that on or before the first day of May in each calendar year, each mutual service company and each subsidiary service company as to which the Commission shall have made a favorable finding pursuant to Rule 88, and every service company whose application for approval or declaration pursuant to Rule 88 is pending shall file with the Commission an annual report on Form U- 13-60 and in accordance with the Instructions for that form. 2. Number of Copies. Each annual report shall be filed in duplicate. The company should prepare and retain at least one extra copy for itself in case correspondence with reference to the report become necessary. 3. Period Covered by Report. The first report filed by any company shall cover the period from the date the Uniform System of Accounts was required to be made effective as to that company under Rules 82 and 93 to the end of that calendar year. Subsequent reports should cover a calendar year. 4. Report Format. Reports shall be submitted on the forms prepared by the Commission. If the space provided on any sheet of such form is inadequate, additional sheets may be inserted of the same size as a sheet of the form or folded to each size. 5. Money Amounts Displayed. All money amounts required to be shown in financial statements may be expressed in whole dollars, in thousands of dollars or in hundred thousands of dollars, as appropriate and subject to provisions of Regulation S-X (SS210.3-01(b)). 6. Deficits Displayed. Deficits and other like entries shall be indicated by the use of either brackets or a parenthesis with corresponding reference in footnotes. (Regulation S-X, SS210.3-01(c)) 7.Major Amendments or Corrections. Any company desiring to amend or correct a major omission or error in a report after it has been filed with the Commission shall submit an amended report including only those pages, schedules, and entries that are to be amended or corrected. A cover letter shall be submitted requesting the Commission to incorporate the amended report changes and shall be signed by a duly authorized officer of the company. 8. Definitions Definitions contained in Instruction 01-8 to the Uniform System of Accounts for Mutual Service Companies and Subsidiary Service Companies, Public Utility Holding Company Act of 1935, as amended February 2, 1979 shall be applicable to words or terms used specifically within this Form U- 13-60. 9. Organization Chart. The Service Company shall submit with each annual report a copy of its current organization chart. 10. Methods of Allocation The Service Company shall submit with each annual report a listing of the currently effective methods of allocation being used by the Service Company and on file with the Securities and Exchange Commission pursuant to the Public Utility Holding Company Act of 1935. 11. Annual Statement of Compensation for Use of Capital Billed. The Service Company shall submit with each annual report a copy of the annual statement supplied to each associate company in support of the amount of compensation for use of capital billed during the calendar year. 3 of 27 pages
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS Schedule or Page Description of Schedules and Accounts Account Number Number Comparative Balance Sheet Schedule I 5-6 Service Company Property Schedule II 7 Accumulated Provision for Depreciation and Amortization of Service Company Property Schedule III 8 Investments Schedule IV 9 Accounts Receivable from Associate Companies Schedule V 9A Fuel Stock Expenses Undistributed Schedule VI 10 Stores Expense Undistributed Schedule VII 10 Miscellaneous Current and Accrued Assets Schedule VIII 11 Miscellaneous Deferred Debits Schedule IX 11 Research, Development, or Demonstration Expenditures Schedule X 11A Proprietary Capital Schedule XI 12 Long-Term Debt Schedule XII 13 Current and Accrued Liabilities Schedule XIII 14 Notes to Financial Statements Schedule XIV 14A-14H Comparative Income Statement Schedule XV 15-15A Analysis of Billing - Associate Companies Account 457 16 Analysis of Billing - Nonassociate Companies Account 458 17 Analysis of Charges for Service - Associate and Nonassociate Companies Schedule XVI 18-18B Schedule of Expense Distribution by Department or Service Function Schedule XVII 19-19E Departmental Analysis of Salaries Account 920 20-21 Outside Services Employed Account 923 20 Outside Services Employed Account 923 21A-21B Employee Pensions and Benefits Account 926 22 General Advertising Expenses Account 930.1 22 Miscellaneous General Expenses Account 930.2 23 Rents Account 931 23 Taxes Other Than Income Taxes Account 408 24 Donations Account 426.1 24 Other Deductions Account 426.5 25 Notes to Statement of Income Schedule XVIII 25 LISTING OF INSTRUCTIONAL FILING REQUIREMENTS Page Description of Reports or Statements Number Organization Chart 26-26C Methods of Allocation 26D-26C Annual Statement of Compensation for Use of Capital Billed 26
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ANNUAL REPORT OF AMEREN SERVICES COMPANY For Year Ended December 31, 1998 Schedule I - Comparative Balance Sheet (In Thousands) Give balance sheet of the Company as of December 31 of the current and prior year. Account Assets and Other Debits As of December 31 Current Prior - N/A Service Company Property 101 Service company property (Schedule II) $19,098 107 Construction work in progress (Schedule II) 3,201 Total Property 22,299 0 108 Less accumulated provision for depreciation and amortization of service company property (Schedule III) 2,688 Net Service Company Property 19,611 0 Investments 123 Investments in associate companies (Schedule IV) 0 124 Other Investments (Schedule IV) 0 Total Investments 0 0 Current and Accrued Assets 131 Cash 1,600 134 Special deposits 0 135 Working funds 26 136 Temporary cash investments (Schedule IV) 0 143 Accounts receivable 17,225 145 Notes receivable 950 146 Accounts receivable from associate companies (Schedule V) 22,998 152 Fuel stock expenses undistributed (Schedule VI) 0 154 Materials and supplies 0 163 Stores expense undistributed (Schedule VII) (21) 165 Prepayments 141 174 Miscellaneous current and accrued assets (Schedule VIII) Total Current and Accrued Assets 43,159 0 Deferred Debits 181 Unamortized debt expense 0 184 Clearing accounts 0 186 Miscellaneous deferred debits (Schedule IX) 48 188 Research, development, or demonstration expenditures (Schedule X) 0 190 Accumulated deferred income taxes 0 Total Deferred Debits 48 TOTAL ASSETS AND OTHER DEBITS $63,259 0 5 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY Schedule I - Comparative Balance Sheet (In Thousands) Account Liabilities and Proprietary Capital As of December 31 Current Prior - N/A Proprietary Capital 201 Common stock issued (Schedule XI) $0 211 Miscellaneous paid-in-capital (Schedule XI) 16,232 215 Appropriated retained earnings (Schedule XI) 0 216 Unappropriated retained earnings (Schedule XI) 0 Total Proprietary Capital 16,232 0 Long-Term Debt 223 Advances from associate companies (Schedule XII) 0 224 Other long-term debt (Schedule XII) 0 225 Unamortized premium on long-term debt 0 226 Unamortized discount on long-term debt-debit 0 Total Long-Term Debt 0 0 Current and Accrued Liabilities 228 Injuries and Damages 195 232 Accounts payable 18,114 233 Notes payable to associate companies (Schedule XIII) 2,387 234 Accounts payable to associate companies (Schedule XIII) 8,330 235 Customer Deposits 999 236 Taxes accrued 205 238 Dividends declared 0 241 Tax collections payable 735 242 Miscellaneous current and accrued liabilities (Schedule XIII) 6,619 Total Current and Accrued Liabilities 37,584 0 Deferred Credits 253 Other deferred credits 9,443 255 Accumulated deferred investment tax credits Total Deferred Credits 9,443 0 282 Accumulated Deferred Income Taxes 0 TOTAL LIABILITIES AND PROPRIETARY CAPITAL $63,259
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ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule II - Service Company Property (In Thousands) Balance at Retirements Balance Beginning or Other at Close Description of Year Additions Sales Changes of Year Service Company Property Account 303 Miscellaneous Intangible Plant 391 Office Furniture and Equipment 0 $18,933 $30 $18,903 394 Tools, Shop, and Garage Equip. 0 2 2 397 Communication Equipment 0 193 193 399 Other Tangible Property 0 0 0 SUB-TOTAL 0 19,128 30 0 19,098 107 Construction Work in Progress 0 3,201 3,201 TOTAL $0 $22,329 $30 $0 $22,299 Provide an explanation of those changes considered material. Subaccounts are required for each class of equipment owned. The service company shall provide a listing by subaccount of equipment additions during the year and the balance at the close of the year: Subaccount Description Additions Balance at Close of Year Office Furniture and Equipment (391) Main Frame Computer $10,020 $10,020 Reproduction Equipment 354 354 Personal Computer 8,413 8,383 Computer Assisted Drafting 146 146 TOTAL $18,933 $18,903 Describe construction work in progress: Hardware installations for UNIX, Mainframe, PeopleSoft and NT operating systems.
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ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule III - Accumulated Provision for Depreciation and Amortization of Service Company Property (In Thousands) Description Balance at Additions Retirements Other Balance Beginning Charged to Changes Add at Close of Year Account 403 (Deduct) of Year Account 303 Miscellaneous Intangible Plant 391 Office Furniture and Equipment $2,654 $2,654 394 Tools, Shop, and Garage Equip. 0 397 Communication Equipment 34 34 399 Other Tangible Property 0 TOTAL $0 $2,688 $0 $0 $2,688 Provide an explanation of those changes considered material:
8 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule IV - Investments (In Thousands) Instructions: Complete the following schedule concerning investments. Under Account 124 "Other Investments," state each investment separately, with description, including, the name of issuing company, number of shares or principal amount, etc. Under Account 136, "Temporary Cash Investments," list each investment separately. Description Balance at Balance at Beginning of Year Close of Year Account 123 - Investment in Associate Companies none none Account 124 - Other Investments none none Account 136 - Temporary Cash Investments - Money Pool none none ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule V - Accounts Receivable from Associate Companies (In Thousands) Instructions: Provide accommodation or convenience payments for associate companies, a separate listing of total payments for each associate company by subaccount should be provided. Balance at Balance at Description Beginning of Year Close of Year Account 146 - Accounts Receivable from Associate Companies Ameren Corporation $0 $16 Ameren Energy Communications 0 155 CIPSCO Investment Company 0 55 Union Electric Development Corporation 0 42 Electric Energy, Inc 0 108 Ameren Energy, Inc 0 67 Ameren ERC 0 28 Union Electric Company 0 15,490 Central Illinois Public Service Company 0 7,037 TOTAL $0 $22,998 9 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule V - Accounts Receivable from Associate Companies (In Thousands) Description Payments Analysis of Convenience or Accommodation Payments: Union Electric Company $1,662 Central Illinois Public Service Company 394 Electric Energy, Inc 24 $2,080 9-A ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 3 1, 1998 Schedule VI - Fuel Stock Expenses Undistributed (In Thousands) Instructions: Report the amount of labor and expenses incurred with respect to fuel stock expenses during the year and indicate amount attributable to each associate company. Under the section headed "Summary" listed below give an overall report of the fuel functions performed by the service company. Description Labor Expenses Total Account 152 - Fuel Stock Expenses Undistributed none none none no account 152 for any Ameren company TOTAL none none none ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule VII - Stores Expense Undistributed (In Thousands) Instructions: Report the amount of labor and expenses incurred with respect to stores expense during the year and indicate amount attributable to each associate company. Description Labor Expenses Total Account 163 - Stores Expense Undistributed none (21) (21) TOTAL 0 (21) (21) 10 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule VIII - Miscellaneous Current and Accrued Assets (In Thousands) Instructions: Provide detail of items in this account. Items less than $ 10,000 may be grouped, showing the number of items in each group. Balance at Balance at Beginning of Year Close of Year Account 174 - Miscellaneous Current and Accrued Assets none none TOTAL none none ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule IX - Miscellaneous Deferred Debits (In Thousands) Instructions: Provide detail of items in this account. Items less than 10,000 may be grouped by class showing the number of items in each class. Balance at Balance at Description Beginning of Year Close of Year Account 186 - Miscellaneous Deferred Debits Other Work in Progress $0 $82 Miscellaneous Software Debits 0 406 Non Service Request Billings 0 1 TOTAL $0 $489 11 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule X - Research, Development or Demonstration Expenditures (In Thousands) Instructions. Provide a description of each material research, development, or demonstration project which incurred costs by the service corporation during the year. Description Amount Account 188 - Research, Development, or Demonstration Expenditures none TOTAL none 11 - A ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XI - Proprietary Capital
Number of Shares Par or Stated Outstanding Close of Period Account Number Class of Stock Authorized Value Per Share No. of Shares Total Amount 201 Common Stock Issued 30,000 $0.01 1,000 $10
Instructions: Classify amounts in each account with brief explanation, disclosing the general nature of transactions which give rise to the reported amounts. (in thousands) Description Amount Account 211 -Miscellaneous Paid-in Capital $16,232 Account 215 - Appropriated Retained Earnings 0 TOTAL 16,232 Instructions: Give particulars concerning net income or (loss) during the year, distinguishing between compensation for the use of capital owed or net loss remaining from servicing associates per the General Instructions of the Uniform System of Accounts. For dividends paid during the year in cash or otherwise, provide rate percentage, amount of dividend, date declared and date paid.
Description Balance at Net Income Dividends Balance at Beginning of Year -or (loss) Paid Close of Year Account 216 - Unappropriated Retained Earnings none none none none TOTAL none none none
12 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XII - Long-Term Debt (In Thousands) Instructions.- Advances from associate companies should be reported separately for advances on notes, and advances on open account. Names of associate companies from which advances were received shall be shown under the class and series of obligation column. For Account 224 - Other long-term debt provide the name of creditor company or organization, terms of the obligation, date of maturity, interest rate, and the amount authorized and outstanding.
Terms of Obligation Balance at Balance at Class & Series Date of Interest Amount Beginning Close Name of Creditor of Obligation Maturity Rate Authorized of Year Additions Deductions of Year Account 223 - Advances from Associate Companies: none none none Account 224 - Other Long-Term Debt: none none none none TOTAL none none none none Give an explanation of Deductions: none
13 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XIII - Current and Accrued Liabilities (In Thousands) Instructions: Provide balance of notes and accounts payable to each associate company. Give description and amount of miscellaneous current and accrued liabilities. Items less than $10,000 may be grouped, showing the number of items in each group.
Balance at Balance at Description Beginning of Year Close of Year Account 233 - Notes Payable to Associate Companies Ameren Corporation $0 $1,340 CIPSCO Investment Company 0 1,047 TOTAL 10 $2,387 Account 234 - Accounts Payable to Associate Companies CIPSCO Investment Company 0 $32 Electric Energy Inc 0 1,554 Ameren Energy 0 6,744 TOTAL $0 $8,330 Account 242 - Miscellaneous Current And Accrued Liabilities Accrued Dollar More Program 0 $3 Accrued Compensation Awards 0 (630) Accrued Law Expenses 0 (61) Accrued Vacation Liability 0 6,954 Major Medical - Contract Employees 0 10 Dental & Optical - Local 1455 0 3 Major Medical - Executive 0 (2) General American Group Life Insurance 0 15 Long Term Disability Insurance 0 59 Supplemental Group Life 0 6 Medical Insurance 0 7 Personal Care HMO 0 (1) Employee Medical Plan 0 (14) Contributions - United Fund 0 15 Wage Garnishments 0 2 Group Health Plan 0 (7) Major Medical Premium Surplus 0 (190) Employee Dependent Care Liability 0 3 Dental Allowances - 1439,649,309 0 1 Deferred Comp - Board of Directors 0 60 Installments Received Common Stock 0 3 Self Insured Medical Liability 0 386 TOTAL $6,619
14 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XIV - Notes to Financial Statements Instructions: The space below is provided for important notes regarding the financial statements or any account thereof Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. See pages 14 - B through 14 - H Pg 14 - A ANNUAL REPORT OF AMEREN SERVICES COMPANY For Year Ended December 31, 1998 Schedule XIV - Notes to Financial Statements NOTE 1 - Summary of Significant Accounting Policies Organization and Nature of Operations Ameren Services, Inc. (the Company) is a wholly-owned subsidiary of Ameren Corporation (Ameren), registered under the Public Utility Holding Company Act of 1935 (PUHCA). The Company was authorized to conduct business as a service company for Ameren and its various subsidiaries by order of the Securities and Exchange Commission (SEC) dated December 31, 1997, which became effective January 1, 1998. The Company is organized along functional lines to accomplish its purpose of providing management, administrative, and technical services. These services are priced so that the Company operates on a break-even basis. The Company maintains its accounts in accordance with PUHCA, as administered by the SEC, and has adopted a system of accounts consistent with that prescribed by the Federal Energy Regulatory Commission. The accounting policies of the Company conform to generally accepted accounting principles (GAAP). Property and Plant The cost of additions to, and betterments of, units of property and plant is capitalized. Cost includes labor, material, applicable taxes and overheads. Maintenance expenditures and the renewal of items not considered units of property are charged to income as incurred. When units of depreciable property are retired, the original cost and removal cost, less salvage, are charged to accumulated depreciation. Depreciation Depreciation is provided over the estimated lives of the various classes of depreciable property by applying composite rates on a straight-line basis. Income Taxes Ameren and its subsidiaries file a consolidated federal tax return. Deferred tax assets and liabilities are recognized for the tax consequences of transactions that have been treated differently for financial reporting and tax return purposes, measured using statutory tax rates. The Company's expenses are billed to the other subsidiaries of Ameren and taxes are computed on those entities. The Company had no deferred tax assets or liabilities at December 31, 1998. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. Such estimates and assumptions may affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Fair Value of Financial Instruments The carrying amounts of financial instruments on the Company's books are a reasonable estimate of their fair value. NOTE 2 - Common Stock The Company is authorized to issue 30,000 shares of common stock at a par value of one cent ($.01) per share. Ameren holds all of the Company's common stock. At December 31, 1998, there were 1,000 shares outstanding. Pg 14 - B ANNUAL REPORT OF AMEREN SERVICES COMPANY For Year Ended December 3 1, 1998 Schedule XIV - Notes to Financial Statements NOTE 3 - Financing Arrangements Ameren's non-regulated subsidiaries have established a money pool to better manage cash and working capital requirements. Ameren has a bank credit agreement, due 2003, that allows for borrowing on a long-term basis of up to $200 million. This credit agreement is available to Ameren and its subsidiaries, including the Company. As of December 31, 1998, $190 million was available for the Company's use. NOTE 4 - Retirement Benefits In 1998, Ameren adopted SFAS 132, "Employers' Disclosures about Pension and Other Postretirement Benefits." Ameren has defined-benefit retirement plans covering substantially all of its employees. Benefits are based on the employees' years of service and compensation. Ameren's plans are funded in compliance with income tax regulations and federal funding requirements. The plans of Union Electric Company (AmerenUE), an operating subsidiary of Ameren, cover qualified employees of AmerenUE as well as certain employees of the Company. Following is the pension plan information related to AmerenUE's plans as of December 31, 1998. Pension costs for the year were $28 million of which approximately 19% was charged to construction accounts. Funded Status of Pension Plans: (in millions) Change in benefit obligation Net benefit obligation at beginning of year $999 Service cost 24 Interest cost 70 Amendments 10 Actuarial loss 38 Special termination benefits 7 Benefits paid (88) Net benefit obligation at end of year 1,060 Change in plan assets * Fair value of plan assets at beginning of year 1,006 Actual return on plan assets 122 Employer contributions 1 Benefits paid (88) Fair value of plan assets at end of year 1,041 Funded status - (excess)/deficiency 19 Unrecognized net actuarial gain 121 Unrecognized prior service cost (73) Unrecognized net transition asset 6 Accrued pension cost at December 31 $73 Plan assets consist principally of common stocks and fixed income securities. Pg 14 - C ANNUAL REPORT OF AMEREN SERVICES COMPANY For Year Ended December 31, 1998 Schedule XIV - Notes to Financial Statements Components of Net Periodic Benefit Cost: (in millions) Service cost $24 Interest cost 70 Expected return on plan assets (75) Amortization of Transition asset (1) Prior service cost 6 Actuarial (gain)/loss (3) Special termination benefit charge 7 Net periodic benefit cost $28 Weighted-average Assumptions for Actuarial Present Value of Projected Benefit Obligations: Discount rate at measurement date 6.75% Expected return on plan assets 8.5% Increase in future compensation 4% The plans of Central Illinois Public Service Company (AmerenCIPS), an operating subsidiary of Ameren, cover substantially all employees of AmerenCIPS as well as certain employees of the Company. Following is the pension plan information related to AmerenCIPS' plans as of December 31, 1998. Pension costs for the year were $9 million of which approximately 19% was charged to construction accounts. Funded Status of Pension Plan: (in millions) Change in benefit obligation Net benefit obligation at beginning of year $249 Service cost 8 Interest cost 17 Amendments 5 Actuarial loss 8 Special termination benefits 5 Benefits paid (31) Net benefit obligation at end of year 261 Change in plan assets * Fair value of plan assets at beginning of year 319 Actual return on plan assets 38 Employer contributions 5 Benefits paid (31) Fair value of plan assets at end of year 331 Funded status - excess (70) Unrecognized net actuarial gain 73 Unrecognized prior service cost (13) Unrecognized net transition asset 2 Prepaid pension cost at December 31 $(8) Plan assets consist principally of common and preferred stocks, bonds, money market instruments and real estate. Pg 14 - D ANNUAL REPORT OF AMEREN SERVICES COMPANY For Year Ended December 31, 1998 Schedule XIV - Notes to Financial Statements Components of Net Periodic Benefit Cost: (in millions) Service cost $ 8 Interest cost 17 Expected return on plan assets (22) Amortization of-. Prior service cost 1 Special termination benefit charge 5 Net periodic benefit cost $ 9 Weighted-average Assumptions for Actuarial Present Value of Projected Benefit Obligations: Discount rate at measurement date 6.75% Expected return on plan assets 8.5% Increase in future compensation 4% In addition to providing pension benefits, Ameren provides certain health care and life insurance benefits for retired employees. Ameren accrues the expected postretirement benefit costs during employees' years of service. AmerenUE's plans cover substantially all qualified employees of AmerenUE as well as certain employees of the Company. AmerenUE's funding policy is to annually contribute the net periodic cost to a Voluntary Employee Beneficiary Association trust (VEBA). Postretirement benefit costs were $43 million for 1998 of which approximately 17% was charged to construction accounts. AmerenUE's transition obligation at December 31, 1998 is being amortized over the next 14 years. The MoPSC and the ICC allow the recovery of postretirement benefit costs in rates to the extent that such costs are funded. In December 1995, AmerenUE established two external trust funds for retiree health care and life insurance benefits. In 1998, claims were paid out of the plan trust funds. Pg 14 - E ANNUAL REPORT OF AMEREN SERVICES COMPANY For Year Ended December 31, 1998 Schedule XIV - Notes to Financial Statements Funded Status of the Plans: (in millions) Change in benefit obligation Net benefit obligation at beginning of year $333 Service cost 14 Interest cost 24 Actuarial loss 9 Benefits paid (20) Net benefit obligation at end of year 360 Change in plan assets * Fair value of plan assets at beginning of year 81 Actual return on plan assets 8 Employer contributions 44 Unincorporated business income tax (3) Benefits paid (20) Fair value of plan assets at end of year 110 Funded status - deficiency 250 Unrecognized net actuarial gain 11 Unrecognized prior service cost (3) Unrecognized net transition obligation (175) Postretirement benefit liability at December 31 $83 * Plan assets consist principally of common stocks and fixed income securities. Components of Net Periodic Benefit Cost: (in millions) Service cost $14 Interest cost 24 Expected return on plan assets (5) Amortization of Transition obligation 12 Actuarial gain (2) Net periodic benefit cost $43 Assumptions for the Obligation Measurements: Discount rate at measurement date 6.75% Expected return on plan assets 8.5% Medical cost trend rate - initial 5.75% - ultimate 4.75% Ultimate medical cost trend rate expected in year 2000 A 1% increase in the medical cost trend rate is estimated to increase the net periodic cost and the accumulated postretirement benefit obligation approximately $4 million and $29 million, respectively. A 1% decrease in the medical cost trend rate is estimated to decrease the net periodic cost and the accumulated postretirement benefit obligation approximately $4 million and $29 million, respectively. Pg 14 - F ANNUAL REPORT OF AMEREN SERVICES COMPANY For Year Ended December 31, 1998 Schedule XIV - Notes to Financial Statements AmerenCIPS' plans cover substantially all qualified employees of AmerenCIPS as well as certain employees of the Company. AmerenCIPS' funding policy is to fund the two VEBAs and the 401(h) account established within the AmerenCIPS retirement income trust with the lesser of the net periodic cost or the amount deductible for federal income tax purposes. Following is the postretirement plan information related to AmerenCIPS' plans as of December 31, 1998. Postretirement benefit costs were $6 million for 1998 of which approximately 20% was charged to construction accounts. AmerenCIPS' transition obligation at December 31, 1998 is being amortized over the next 14 years. The ICC allows the recovery of postretirement benefit costs in rates to the extent that such costs are funded. Funded Status of the Plans: (in millions) Change in benefit obligation Net benefit obligation at beginning of year $140 Service cost 3 Interest cost 10 Actuarial (gain)/loss 4 Benefits paid (5) Net benefit obligation at end of year 152 Change in plan assets * Fair value of plan assets at beginning of year 115 Actual return on plan assets 16 Employer contributions 4 40 1 (h) transfer (2) Benefits paid (5) Fair value of plan assets at end of year 128 Funded status - deficiency 24 Unrecognized net actuarial gain 58 Unrecognized net transition obligation (76) Postretirement benefit liability at December 31 $ 6 * Plan assets consist principally of common and preferred stocks, bonds, money market instruments and real estate. Components of Net Periodic Benefit Cost: (in millions) Service cost $3 Interest cost 10 Expected return on plan assets (8) Amortization of: Transition obligation 5 Actuarial gain (4) Net periodic benefit cost $6 Pg 14 - G ANNUAL REPORT OF AMEREN SERVICES COMPANY For Year Ended December 31, 1998 Schedule XIV - Notes to Financial Statements Assumptions for the Obligation Measurements: Discount rate at measurement date 6.75% Expected return on plan assets 8.5% Medical cost trend rate - initial 5.75% - ultimate 4.75% Ultimate medical cost trend rate expected in year 2000 A 1% increase in the medical cost trend rate is estimated to increase the net periodic cost and the accumulated postretirement benefit obligation approximately $2 million and $22 million, respectively. A 1% decrease in the medical cost trend rate is estimated to decrease the net periodic cost and the accumulated postretirement benefit obligation approximately $2 million and $22 million, respectively. NOTE 5 - Interchange Transactions The Company acts as an agent for the coordination of interchange transactions with outside parties. Amounts related to these transactions are allocated to AmerenUE and AmerenCIPS. Pg 14 - H ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XV Statement of Income (In Thousands)
Account Description Current Year Prior Year - N/A Income 457 Services rendered to associate companies $222,128 458 Services rendered to nonassociate companies 0 456 Other Electric Revenues 16 Total Income 222,144 Expense 920 Salaries and wages 59,188 921 Office Supplies and Expenses 12,917 922 Administrative Expense Transferred - Credit 650 923 Outside Services Employed 79,424 924 Property Insurance 3 925 Injuries and Damages (967) 926 Employee Pensions and Benefits (505) 928 Regulatory Commission Expense701 930.1 General Advertising Expenses 16 930.2 Miscellaneous General Expenses 4,070 931 Rents 20,036 935 General Plant Maintenance 1,517 901 Customer Accounts - Supervision 277 902 Customer Accounts - Meter Reading 1,477 903 Customer Accounts - Customer Records 8,304 905 Customer Accounts - Miscellaneous 419 908 Customer/Information Expense - Assistance 892 909 Customer/Information Expense - Informational 1,328 910 Customer/Information Expense - Miscellaneous 650 912 Demonstration & Selling Expenses 3,446 916 Miscellaneous Sales Expense 214 501 Steam - Operation Supervision & Eng. 1,350 505 Steam - Electric Expenses 21 510 Steam - Maintenance Supervision & Eng 648 512 Steam - Maintenance of Boiler Plant 1 513 Steam - Maintenance of Electric Plant 3 517 Nuclear - Operation Supervision & Eng 7 524 Nuclear - Miscellaneous Operation Expenses 100 528 Nuclear - Maintenance Supervision & Eng. 4 537 Hydro Operation - Hydraulic Expenses 2 539 Hydro Operation - Miscellaneous Expenses 1 541 Hydro Maintenance - Supervision & Eng 182 Subtotal 196,376
15 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XV Statement of Income (Continued) (In Thousands)
Account Description Current Year Prior Year - N/A 556 Other Power Supply Expenses 1,663 557 Other Power Supply Expenses - Training 2,229 560 Transmission Operation - Supervision & Eng 87 561 Transmission Operation - Load Dispatch 2,925 566 Transmission Operation - Misc. Expenses 9 568 Transmission Maintenance - Supv. & Eng. 542 580 Distribution Operation - Supervision & Eng 1,469 581 Distribution Operation - Load Dispatch 4 582 Distribution Operation - Station Expenses 24 583 Distribution Operation - Overhead Line 33 584 Distribution Operation - Underground Lines 25 585 Distribution Operation - Street Lighting 1 586 Distribution Operation - Meter Expenses 869 587 Distribution Operation - Installation Expense 60 588 Distribution Operation - Misc. 1,169 590 Distribution Maintenance - Supv. & Eng 2,329 592 Distribution Maintenance - Station Expenses 193 593 Distribution Maintenance - Overhead Lines 907 594 Distribution Maintenance - UG Lines 3 596 Distribution Maintenance - Street Lighting 3 597 Distribution Maintenance - Meters 160 598 Distribution Maintenance - Misc 8 807 Purchase Gas Expense 809 814 Underground Storage Operation - Supv. & Eng 72 830 Underground Storage Expense Maintenance 71 850 Transmission Expense - Supv. & Eng 58 857 Transmission Expense - Regulating Stations 440 859 Transmission Expense - Other 1,657 861 Transmission Expense Maintenance - Supv. 60 867 Transmission Expense Maintenance - Other 18 870 Distribution Operation - Supervision & Eng 332 879 Distribution Operation - Installation Expense 5 880 Distribution Operation - Other 577 885 Distribution Maintenance - Supv. & Eng 9 893 Distribution Maintenance - Meters 687 403 Depreciation and Amortization Expense 612 408 Taxes Other Than Income Taxes 1,065 419 Interest & Dividend Income (32) 421 Provision for Deferred Income Taxes (33) 418 Non-Operating Rental Income 35 426.1 Donations 2 426.4 Expenditures for certain civic activities 125 426.5 Other Deductions 1,788 427 Interest on Long-Term Debt 0 431 Other Interest Expense 2,699 Total Expense 222,144 Net Income or (Loss) $0
15 - A ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Analysis of Billing Associate Companies - Account 457 (In Thousands)
Direct Indirect Compensation Total Costs Costs For Use Amount Name of Associate Company Charged Charged of Capital Billed 457-1 457-2 457-3 Ameren Corporation $445 $156 $601 Ameren Energy Communications 267 114 381 CIPSCO Investment Company 180 55 235 Union Electric Development Company 931 248 1,179 Ameren Energy, Inc 161 39 200 AmerenERC 116 43 159 AmerenUE 126,016 29,027 155,043 AmerenCIPS 52,223 12,107 64,330 TOTAL $180,339 $41,789 $0 $222,128
16 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Analysis of Billing Nonassociate Companies - Account 458 (In Thousands) Instruction: Provide a brief description of the services rendered to each nonassociate company: Name of Non- associate Company Direct Indirect Compensation Total Excess Total Cost Cost For Use Cost Or Amount Charged Charged of Capital Deficiency Billed 458-1 458-2 457-3 458-4 none TOTAL $0 $0 $0 $0 $0 $0 17 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XVI - Analysis of Charges for Service Associate and Nonassociate Companies (in Thousands) Instruction: Total cost of service will equal for associate and nonassociate companies the total amount billed under their separate analysis of billing schedules.
Associate Company Charges Nonassociate Company Charges Total Charges for Service Direct Indirect Direct Indirect Direct Indirect Account Description of Items Cost Cost Total Cost Cost Total Cost Cost Total 920 Salaries and Wages $48,790 $10,398 $59,188 $0 $0 $0 $48,790 $10,398 $59,188 921 Office Supplies and Expenses 11,414 1,503 12,917 0 11,414 1,503 12,917 922 Administrative Expense Transferred - Credit 650 650 0 0 650 650 923 Outside Services Employed 72,894 6,530 79,424 0 72,894 6,530 79,424 924 Property Insurance 1 2 3 0 1 2 3 925 Injuries and Damages (967) 0 (967) 0 (967) 0 (967) 926 Employee Pensions and Benefits (505) 0 (505) 0 (505) 0 (505) 928 Regulatory Commission Expense 697 4 701 0 697 4 701 930.1 General Advertising Expenses 16 0 16 0 16 0 16 930.2 Miscellaneous General Expenses 3,314 756 4,070 0 3,314 756 4,070 931 Rents 2,417 17,619 20,036 0 2,417 17,619 20,036 935 General Plant Maintenance 1,323 194 1,517 0 1,323 194 1,517 901 Customer Accounts - Supervision 273 4 277 0 273 4 277 902 Customer Accounts - Meter Reading 1,475 2 1,477 0 1,475 2 1,477 903 Customer Accounts - Customer Records 7,878 426 8,304 0 7,878 426 8,304 905 Customer Accounts - Miscellaneous 419 0 419 0 419 0 419 908 Customer/information Expense - Assistance 743 149 892 0 743 149 892 909 Customer/Information Expense - Informational 1,182 146 1,328 0 1,182 146 1,328 910 Customer/Information Expense - Miscellaneous 526 124 650 0 526 124 650 912 Demonstration & Selling Expenses 2,977 469 3,446 0 2,977 469 3,446 916 Miscellaneous Sales Expense 210 4 214 0 210 4 214 501 Steam - Operation Supervision & Eng. 1,301 49 1,350 0 1,301 49 1,350 505 Steam - Electric Expenses 0 21 21 0 0 21 21 510 Steam - Maintenance Supervision & Eng 648 0 648 0 648 0 648 512 Steam - Maintenance of Boiler Plant 1 0 1 0 1 0 1 513 Steam - Maintenance of Electric Plant 3 0 3 0 3 0 3 Subtotal $157,030 $39,050 $196,080 $0 $0 $0 $157,030 $39,050 $196,0801
18 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XVI - Analysis of Charges for Service Associate and Nonassociate Companies (In Thousands) Instruction: Total cost of service will equal for associate and nonassociate companies the total amount billed under their separate analysis of billing schedules.
Associate Company Charges Nonassociate Company Charges Total Charges for Service Direct Indirect Direct Indirect Direct Indirect Account Description of Items Cost Cost Total Cost Cost Total Cost Cost Total 517 Nuclear - Operation Supervision & Eng $7 $0 $7 $0 $7 $0 $7 524 Nuclear - Miscellaneous Operation Expenses 100 0 100 0 100 0 100 528 Nuclear - Maintenance Supervision & Eng. 4 0 4 0 4 0 4 537 Hydro Operation - Hydraulic Expenses 2 0 2 0 2 0 2 539 Hydro Operation - Miscellaneous Expenses 1 0 1 0 1 0 1 541 Hydro Maintenance - Supervision & Eng 182 0 182 0 182 0 182 556 Other Power Supply Expenses 1,652 11 1,663 0 1,652 11 1,663 557 Other Power Supply Expenses - Training 2,133 96 2,229 0 2,133 96 2,229 560 Transmission Operation - Supervision & Eng 87 0 87 0 87 0 87 561 Transmission Operation - Load Dispatch 2,924 1 2,925 0 2,924 1 2,925 566 Transmission Operation - Misc. Expenses 5 4 9 0 5 4 9 568 Transmission Maintenance - Supv. & Eng. 542 0 542 0 542 0 542 580 Distribution Operation - Supervision & Eng 1,393 76 1,469 0 1,393 76 1,469 581 Distribution Operation - Load Dispatch 4 0 4 0 4 0 4 582 Distribution Operation - Station Expenses 22 2 24 0 22 2 24 583 Distribution Operation - Overhead Line 30 3 33 0 30 3 33 584 Distribution Operation - Underground Lines 23 2 25 0 23 2 25 585 Distribution Operation - Street Lighting 1 0 1 0 1 0 1 586 Distribution Operation - Meter Expenses 838 31 869 0 838 31 869 587 Distribution Operation - Installation Expense 39 21 60 0 39 21 60 588 Distribution Operation - Misc. 1,110 59 1,169 0 1,110 59 1,169 590 Distribution Maintenance - Supv. & Eng 2,197 132 2,329 0 2,197 132 2,329 592 Distribution Maintenance - Station Expenses 193 0 193 0 193 0 193 593 Distribution Maintenance - Overhead Lines 868 39 907 0 868 39 907 594 Distribution Maintenance - UG Lines 3 0 3 0 3 0 3 596 Distribution Maintenance - Street Lighting 3 0 3 0 3 0 3 597 Distribution Maintenance - Meters 160 0 160 0 160 0 160 598 Distribution Maintenance - Misc 8 0 8 0 8 0 8 Subtotal $14,531 $477 $15,008 $0 $0 $0 $14,531 $477 $15,008
18 - A ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XVI - Analysis of Charges for Service Associate and Nonassociate Companies (In Thousands) Instruction: Total cost of service will equal for associate and nonassociate companies the total amount billed under their separate analysis of billing schedules.
Associate Company Charges Nonassociate Company Charges Total Charges for Service Direct Indirect Direct Indirect Direct Indirect Account Description of Items Cost Cost Total Cost Cost Total Cost Cost Total 807 Purchase Gas Expense $809 $0 $809 $0 $809 $0 $809 814 Underground Storage Operation - Supv. & Eng 72 0 72 0 72 0 72 830 Underground Storage Expense Maintenance 71 0 71 0 71 0 71 850 Transmission Expense - Supv. & Eng 58 0 58 0 58 0 58 857 Transmission Expense - Regulating Stations 440 0 440 0 440 0 440 859 Transmission Expense - Other 1,657 0 1,657 0 1,657 0 1,657 861 Transmission Expense Maintenance - Supv. 60 0 60 0 60 0 60 867 Transmission Expense Maintenance - Other 18 0 18 0 18 0 18 870 Distribution Operation - Supervision & Eng 332 0 332 0 332 0 332 879 Distribution Operation - Installation Expense 5 0 5 0 5 0 5 880 Distribution Operation - Other 566 11 577 0 566 11 577 885 Distribution Maintenance - Supv. & Eng 9 0 9 0 9 0 9 893 Distribution Maintenance - Meters 687 0 687 0 687 0 687 403 Depreciation and Amortization Expense 0 612 612 0 0 612 612 408 Taxes Other Than Income Taxes 1,065 0 1,065 0 0 1,065 1,065 419 Interest & Dividend Income (32) 0 (32) 0 0 (32) (32) 421 Provisions for Deferred Income Taxes (33) 0 (33) 0 0 (33) (33) 418 Non-Operating Rental Income 320 3 35 0 32 3 35 426.1 Donations 2 0 2 0 2 0 2 426.4 Expenditures for certain civic activities 89 36 125 0 89 36 125 426.5 Other Deductions 1,653 135 1,788 0 1,653 135 1,788 427 Interest on Long-Term Debt 0 0 0 0 0 0 0 431 Other Interest Expense 2,699 0 2,699 0 0 2,699 2,699 TOTAL EXPENSES $178,121 $44,023 $222,144 $0 $0 $0 $178,121 $44,023 $222,144 430 Interest on Debt to Associate Companies 0 0 0 0 0 0 0 TOTAL COST OF SERVICE $178,121 $44,023 $222,144 $0 $0 $0 $178,121 $44,023 $222,144
18 - B ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XVII - Schedule of Expense Distribution by Department or Service Function (In Thousands)
Account Total Corporate Division Number Description of Items Amount Overheads Comm. Controllers' Marketing 920 Salaries and Wages $59,188 $631 $6,919 $2 921 Office Supplies and Expenses 12,917 197 303 48 922 Admin. Exp. Transferred - Credit 650 27 923 Outside Services Employed 79,424 (4,311) 759 3,798 197 924 Property Insurance 3 925 Injuries and Damages (967) 926 Employee Pensions and Benefits (505) (146) 928 Regulatory Commission Expense 701 930.1 General Advertising Expenses 16 16 930.2 Miscellaneous General Expenses 4,070 1,520 931 Rents 20,036 935 General Plant Maintenance 1,517 901 Customer Accounts - Supervision 277 902 Customer Accounts - Meter Reading 1,477 903 Customer Accounts - Records 8,304 1,061 905 Customer Accounts - Miscellaneous 419 908 Customer Assistance Expense 892 758 909 Customer Informational Expense 1,328 772 497 910 Miscellaneous Customer Expense 650 553 912 Demonstration & Selling Expenses 3,446 3,425 916 Miscellaneous Sales Expense 214 214 501 Steam - Operation Supervision & Eng. 1,350 505 Steam - Electric Expenses 21 510 Steam - Maintenance Supervision & Eng 648 512 Steam - Maintenance of Boiler Plant 1 513 Steam - Maintenance of Electric Plant 3 SUBTOTAL $196,080 ($4,311) $3,749 $11,047 $6,755 Account Division Engineering Energy Environmental Executive Number Description of Items Support & Const. Serv.-Other Safety & Health 920 Salaries and Wages $858 $2,664 $2,524 $2,407 $1,929 921 Office Supplies and Expenses 17 220 171 171 46 922 Admin. Exp. Transferred - Credit 923 Outside Services Employed 5,037 11,140 2,545 1,384 924 Property Insurance 1 925 Injuries and Damages (4) 926 Employee Pensions and Benefits (359) 928 Regulatory Commission Expense 171 930.1 General Advertising Expenses 930.2 Miscellaneous General Expenses 931 Rents 2,170 935 General Plant Maintenance 29 23 901 Customer Accounts - Supervision 24 1 902 Customer Accounts - Meter Reading 7 903 Customer Accounts - Records 2 79 905 Customer Accounts - Miscellaneous 908 Customer Assistance Expense 48 12 909 Customer Informational Expense 910 Miscellaneous Customer Expense 912 Demonstration & Selling Expenses 916 Miscellaneous Sales Expense 501 Steam - Operation Supervision & Eng. 1,350 505 Steam - Electric Expenses 1 510 Steam - Maintenance Supervision & Eng 3 640 512 Steam - Maintenance of Boiler Plant 1 513 Steam - Maintenance of Electric Plant SUBTOTAL $5,589 $14,694 $8,975 $2,603 $3451
19 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XVII- Schedule of Expense Distribution by Department or Service Function (in Thousands)
Account Finance - Gas General Gas Human IM Industrials Number Other Supply Counsel Support Resources Relations 920 $2,853 $418 $3,895 $52 $11,520 $1,370 921 192 64 411 10 619 58 922 79 131 923 1,210 657 2,104 5 1,354 299 924 2 925 (963) 926 928 530 930.1 930.2 1 1,294 47 931 224 24 935 28 901 1902 169 295 903 100 (200) 905 124 295 908 909 910 912 11 7 3 916 501 505 20 510 512 513 Sub total $4,491 $1,532 $7,376 $67 $14,116 $3 $1,727 Account Information Metropolitan Nuclear Departments Power Regional Supply Treasurers Number Technologies Other Plant Service 920 $15,511 $694 $3,155 $1,786 921 10,100 7 81 202 922 413 923 42,830 625 119 17 671 6,056 2,928 924 925 926 928 930.1 930.2 1,208 931 66 17,552 935 693 737 7 901 252 1902 1,006 903 4,492 169 2,601 905 908 3 71 909 59 910 50 47 912 916 501 505 510 5 512 513 3 Sub total $75,416 $625 $0 $813 $25 $1,024 $27,581 $8,732
19 - A ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XVII - Schedule of Expense Distribution by Department or Service Function (In Thousands)
Account Total Corporate Division Division Number Description of Items Amount Overheads Comm. Controllers' Marketing Support 517 Nuclear - Operation Supervision & Eng 7 524 Nuclear - Misc. Operation Expenses 100 528 Nuclear - Mtce Supervision & Eng. 4 3 537 Hydro Operation - Hydraulic Expenses 2 539 Hydro Operation - Miscellaneous Expenses 1 541 Hydro Maintenance - Supervision & Eng 182 556 Other Power Supply Expenses 1,663 557 Other Power Supply Expenses - Training 2,229 560 Trans. Operation - Supervision & Eng 87 58 561 Trans. Operation - Load Dispatch 2,925 566 Trans. Operation - Misc. Expenses 9 5 568 Trans. Maintenance - Supv. & Eng. 542 521 580 Distribution Operation - Supv. & Eng 1,469 1,383 581 Distribution Operation - Load Dispatch 4 582 Distribution Operation - Station Expenses 24 24 583 Distribution Operation - Overhead Line 33 33 584 Dist. Operation - Underground Lines 25 25 585 Distribution Operation - Street Lighting 1 1 586 Distribution Operation - Meter Expenses 869 869 587 Dist. Operation - Installation Expense 60 43 588 Distribution Operation - Misc. 1,169 586 590 Distribution Maintenance - Supv. & Eng 2,329 2,251 592 Dist. Maintenance - Station Expenses 193 192 593 Distribution Maintenance - Overhead Lines 907 894 594 Distribution Maintenance - UG Lines 3 3 596 Distribution Maintenance - Street Lighting 3 3 597 Distribution Maintenance - Meters 160 148 598 Distribution Maintenance - Misc 8 8 807 Purchase Gas Expense 809 814 UG Storage Operation - Supv. & Eng 72 830 UG Storage Expense Maintenance 71 Subtotal $15,960 $0 $0 $0 $0 $7,050 Account Engineering Energy Environmental Executive Number Description of Items & Const. Serv.-Other Safety & Health 517 Nuclear - Operation Supervision & Eng 524 Nuclear - Misc. Operation Expenses 528 Nuclear - Mtce Supervision & Eng. 1 537 Hydro Operation - Hydraulic Expenses 2 539 Hydro Operation - Miscellaneous Expenses 1 541 Hydro Maintenance - Supervision & Eng 182 556 Other Power Supply Expenses 1,663 557 Other Power Supply Expenses - Training 65 1,190 6 560 Trans. Operation - Supervision & Eng 29 561 Trans. Operation - Load Dispatch 2,925 566 Trans. Operation - Misc. Expenses 4 568 Trans. Maintenance - Supv. & Eng. 1 20 580 Distribution Operation - Supv. & Eng 581 Distribution Operation - Load Dispatch 582 Distribution Operation - Station Expenses 583 Distribution Operation - Overhead Line 584 Dist. Operation - Underground Lines 585 Distribution Operation - Street Lighting 586 Distribution Operation - Meter Expenses 587 Dist. Operation - Installation Expense 588 Distribution Operation - Misc. 13 590 Distribution Maintenance - Supv. & Eng 67 592 Dist. Maintenance - Station Expenses 1 593 Distribution Maintenance - Overhead Lines 594 Distribution Maintenance - UG Lines 596 Distribution Maintenance - Street Lighting 597 Distribution Maintenance - Meters 598 Distribution Maintenance - Misc 807 Purchase Gas Expense 814 UG Storage Operation - Supv. & Eng 830 UG Storage Expense Maintenance Subtotal $253 $5,778 $74 $151
19 - B ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XVII- Schedule of Expense Distribution by Department or Service Function (in Thousands)
Account Finance - Gas General Gas Human IM Industrial Number Other Supply Counsel Support Resources Relations 517 524 23 65 528 537 539 541 556 557 31 560 561 566 568 580 581 582 583 584 585 586 587 588 323 230 590 11 592 593 594 596 597 12 598 807 547 262 814 72 830 71 Sub Total $346 $713 $0 $262 $326 $0 $0 Account Information Metropolitan Nuclear Departments Power Regional Supply Treasurers Number Technologies Other Plant Service 517 $7 524 12 528 537 539 541 556 557 937 560 561 566 568 580 581 4 582 583 584 585 586 587 17 588 17 590 592 593 11 2 594 596 597 598 807 814 830 Sub Total $953 $11 $7 $0 $0 $19 $17 $0
19 - C ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XVII - Schedule of Expense Distribution by Department or Service Function (In Thousands)
Account Total Corporate Division Number Description of Items Amount Overheads Comm. Controllers' Marketing 850 Transmission Expense - Supv. & Eng $58 857 Trans. Expense - Regulating Stations 440 859 Transmission Expense - Other 1,657 861 Trans. Expense Maintenance - Supv. 60 867 Trans. Expense Maintenance - Other 18 870 Dist. Operation - Supervision & Eng 332 879 Dist. Operation - Installation Expense 5 880 Distribution Operation - Other 577 885 Distribution Maintenance - Supv. & Eng 9 893 Distribution Maintenance - Meters 687 403 Depreciation and Amortization Expense 612 612 408 Taxes Other Than Income Taxes 1,065 1065 419 Interest & Dividend Income (32) (32) 421 Provisions for Deferred Income Taxes (33) (33) 418 Non-Operating Rental Income 35 426.1 Donations 2 2 426.4 Expenditures for certain civic activities 125 5 426.5 Other Deductions 1,788 204 169 412 427 Interest on Long-Term Debt 0 431 Other Interest Expense 2,699 2,699 Total Expenses $222,144 $0 $3,958 $11,218 $7,167 Account Division Engineering Energy Environmental Executive Number Description of Items Support & Const. Serv.-Other Safety & Health 850 Transmission Expense - Supv. & Eng 857 Trans. Expense - Regulating Stations 859 Transmission Expense - Other 861 Trans. Expense Maintenance - Supv. 867 Trans. Expense Maintenance - Other 870 Dist. Operation - Supervision & Eng 65 879 Dist. Operation - Installation Expense 880 Distribution Operation - Other 3 885 Distribution Maintenance - Supv. & Eng 9 893 Distribution Maintenance - Meters 403 Depreciation and Amortization Expense 408 Taxes Other Than Income Taxes 419 Interest & Dividend Income 421 Provisions for Deferred Income Taxes 418 Non-Operating Rental Income 426.1 Donations 426.4 Expenditures for certain civic activities 426.5 Other Deductions 1 44 212 43 427 Interest on Long-Term Debt 431 Other Interest Expense Total Expenses $12,717 $14,991 $14,965 $2,677 $3,645
19 - D ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XVII- Schedule of Expense Distribution by Department or Service Function (in Thousands)
Account Finance - Gas General Gas Human IM Industrial Number Other Supply Counsel Support Resources Relations 850 $58 857 440 859 1,657 861 60 867 18 870 267 879 880 488 3 6 77 885 893 687 403 408 419 421 418 35 426.1 426.4 120 426.5 24 18 23 427 431 Total $4,861 $5,920 $7,517 $335 $14,577 $3 $1,727 Account Information Metropolitan Nuclear Departments Power Regional Supply Treasurers Number Technologies Other Plant Service 850 857 859 861 867 870 879 5 880 885 893 403 408 419 421 418 426.1 426.4 426.5 499 4 108 27 427 431 Total $76,868 $636 $7 $817 $25 $1,048 $27,706 $8,759
19 - E ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Departmental Analysis of Salaries - Account 920 (In Thousands)
Departmental Salary Expense Name of Department Included in Amounts Billed to Number of Indicate each department Total Parent Other Non Personnel or service function Amount Company Associates Associates End of Year See page 21 $59,188 $0 $59,188 $0 1,330 TOTAL $59,188 $0 $59,188 $0 1,330
ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Outside Services Employed - Account 923 (In Thousands) Instructions: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service. Relationship "A" - Associate "NA" - Non From Whom Purchased Address Associate Amount See pages 21 - A through 21 - B $79,424 20 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Departmental Analysis of Salaries - Account 920 (In Thousands)
Departmental Salary Expense Name of Department Included in Amounts Billed to Number of Indicate each department Total Parent Other Non Personnel or service function Amount Company Associates Associates End of Year Corporate Communications $631 $631 10 Controllers' 6,919 6,919 79 Division Marketing 2 2 42 Division Support 858 858 110 Engineering & Construction 2,664 2,664 128 Energy Services, Other 2,524 2,524 81 Environmental, Safety and Health 2,407 2,407 27 Executive 1,929 1,929 69 Finance & Accounting, Other 2,853 2,853 31 Gas Support 418 418 31 General Counsel 3,895 3,895 43 Gas Supply 52 52 7 Human Resource 11,520 11,520 115 Industrial Relations 1,370 1,370 9 IM 0 0 0 Information Technology 15,511 15,511 357 Metropolitan 0 0 0 Nuclear 0 0 0 Other Departments 694 694 0 Power Plant 0 0 0 Regional 0 0 0 Supply Service 3,155 3,155 117 Treasurer's 1,786 1,786 74 $59,188 $0 $59,188 $0 1,330
21 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Outside Services Employed - Account 923 (In Thousands)
Relationship "A" - Associate "NA" - Non From Whom Purchased Associate Amount OUTSIDE SERVICE Anderson Consulting NA $658 Bradford* Gait NA 37 CSC Planmetrics NA 1,098 ESG Technologies NA 76 Fleishman-Hillard NA 27 Hewitt Associates NA 79 Human Resource Management NA 72 Joseph H Stampfl NA 4 Kevin Roundcount NA 2 Levi Ray & Shoup NA 14 Metzler & Associates NA 555 Metzler Services NA 143 National Economic Resource NA 67 Personal Performance NA 221 Pierce Leahy Corp NA 31 Price Waterhouse NA 566 Putnam Hayes & Bard NA 163 Reid & Preist NA 51 Software Architects NA 12 Towers Perrin NA 121 Other (105) NA 757 Total $4,754 OUTSIDE SERVICE - Legal Maxim Group NA $2 Milbank Tweed Hadley NA 48 RHI Consulting NA 29 Other (6) NA 173 Total $252 OUTSIDE SERVICE - (affiliate provided) Human Resource Management NA $7 Other (3) NA 44,329 Total $44,336
21 - A ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Outside Services Employed - Account 923 (In Thousands)
Relationship "A" - Associate "NA" - Non From Whom Purchased Associate Amount OUTSIDE SERVICE - Software Advance Resources NA $46 Aerotek NA 179 Alternative Resource NA 68 Andersen Consulting NA 22,057 Bradford & Gait NA 163 Computer Enterprises NA 36 Cook Systems International NA 112 Criterion NA 40 Data Processing Resources NA 136 Diversified Consulting NA 57 Diversified Services NA 275 Docucorp International NA 407 EDS Corporation NA 588 ESG Technologies NA 4 Enterprise Consulting NA 30 Four Star Associates NA 197 Four Star Group NA 239 Guaranteed Computers NA 139 Guffey and Associates NA 54 Harbinger NA 66 Innovations NA 39 Intecon NA 331 John Albrecht NA 45 JT Roberts NA 129 Joseph H Stampfl NA 111 Kevin Roundcount NA 47 Levi Ray & Shoup NA 524 MSF&W NA 60 Maxim Group NA 35 RHI Consulting NA 151 Richard Utt NA 55 Ron Cook & Assoc NA 61 Rose International NA 814 Software Architects NA 811 Solution Consultants NA 947 Source Services NA 64 System Services Enterprise NA 31 Technology Partners NA 151 Trans Energy Management NA 27 Work Group Connection NA 46 4-Serv NA 286 Other (57) NA 424 subtotal $30,082 TOTAL $79,424
21 - B ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Employee Pensions and Benefits - Account 926 (In Thousands) Instructions: Provide a listing of each pension plan and benefit program provided by the service company. Such listing should be limited to $25,000. Description Amount Employee Meetings/Functions/Awards $620 Savings Investment Plan 1,874 Post Retirement Benefits Other Pension 11,088 Group Life Insurance 143 Employee Retirement and Insurance Expenses 927 Medical Insurance 7,489 Accidental Death & Dismemberment Insurance 26 Dental Insurance 242 Pension Plans 5,650 Other (25) Transfer to Construction from Acct. 926 (26,539) TOTAL (505) ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 General Advertising Expenses - Account 930.1 (In Thousands) Instructions: Provide a listing of the amount included in Account 930. 1, "General Advertising Expenses," classifying the items according to the nature of the advertising and as defined in the account definition. If a particular class includes an amount in excess of $3,000 applicable to a single payee, show separately the name of the payee and the aggregate amount applicable thereto. Description Name of Payee Amount Amount Advertising in newspapers, periodicals, Telephone Directory $10 billboards, radio, etc. Others 6 Total $16 22 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Miscellaneous General Expenses - Account 930.2 (In Thousands) Instructions: Provide a listing of the amount included in Account 930.2, "Miscellaneous General Expenses," classifying such expenses according to their nature. Payments and expenses permitted by Section 321 (b)(2) of the Federal Election Campaign Act, as amended by Public Law 94-283 in 1976 (2 U.S.C. SS441 (b)(2)) shall be separately classified. Description Amount Labor $1,593 Investor Relations 380 Public Relations 501 Stockholder Related Expenses 422 Board of Director Expenses 1,115 Other Miscellaneous Expenses 59 TOTAL $4,070 ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Rents - Account 931 (In Thousands) Instructions. Provide a listing of the amount included in Account 93 1, "Rents," classifying such expenses by major groupings of property, as defined in the account definition of the Uniform System of Accounts. Type of Property Amount General office $20,014 Automobile 22 TOTAL $20,036 23 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Taxes Other Than Income Taxes - Account 408 (In Thousands) Instructions: Provide an analysis of Account 408, "Taxes Other Than Income Taxes." Separate the analysis into two groups: (1) other than U.S. Government taxes, and (2) U.S. Government taxes. Specify each of the various kinds of taxes and show the amounts thereof. Provide a subtotal for each class of tax. Kind of Tax Amount Taxes' Other Than U.S. Government Taxes Corporate Franchise/Miscellaneous Taxes $7 Subtotal - Taxes Other Than U.S. Government Taxes 7 U.S. Government Taxes Payroll Taxes 1,058 TOTAL $1,065 ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Donations - Account 426.1 (In Thousands) Instructions: Provide a listing of the amount included in Account 426. 1, "Donations," classifying such expenses by its purpose. The aggregate number and amount of all items of less than $3,000 may be in lieu of details. Name of Recipient Purpose of Donation Amount Others $2 TOTAL $2 24 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Other Deductions - Account 426.5 (In Thousands) Instructions: Provide a listing of the amount included in Account 426.5, "Other Deductions," classifying such expenses according to their nature. Description Amount Other Deductions $1,027 Miscellaneous 192 Energy Conservation 3 Appliance Warranty Program 51 Bill Payment Insurance 23 Distribution Service Contracts 12 Ameren Partners 198 ABACUS 100 Consolidated Billing 86 Power Quality 7 Hi-Voltage Facility Maintenance & Training 64 Customer Substation 25 TOTAL $1,788 ANNUAL REPORT OF AMEREN SERVICES COMPANY For the Year Ended December 31, 1998 Schedule XVIII - Notes to Statement of Income Instructions: The space below is provided for important notes regarding the statement of income or any account thereof. Furnish particulars as to any significant increases in services rendered or expenses incurred during the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. See Notes to Financial Statements on pages 14 - B through 14 - K 25 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY Organization Chart See pages 26 - A through 26 - C Methods of Allocation See page 26 - B through 26 - C Annual Statement of Compensation for Use of Capital Billed - None - 26 of 27 pages ANNUAL REPORT OF AMEREN SERVICES COMPANY For Year Ended December 31, 1999 Organization Chart Organization President Customer Services - Senior Vice President Corporate Communications - Vice President Advertising & Community Relations Media & Employee Communications Division Support - Vice President Customer Relations Distribution Engineering Distribution Operating Personnel Development & Administration Substations & Transmission System Relay Service Information Technology - Vice President Customer Accounts Data Operations Planning & Support Telecommunications Development Marketing & Sales - General Manager Pricing Sales & Service Marketing Marketing & Sales Illinois Sales Economic Development Energy Supply Services - Senior Vice President Energy Supply - Vice President Operations Analysis System Operations EMS Support Gas Operations Support - Vice President Gas Technical Support Gas Transportation Metering Training Gas Control Supply Services - Vice President Building Service Motor Transportation Purchasing Real Estate Stores 26 - A ANNUAL REPORT OF AMEREN SERVICES COMPANY For Year Ended December 31, 1999 Organization Chart Energy Supply Services - Senior Vice President (cont.) Corporate Planning - Vice President Rate Engineering Corporate Analysis Business Analysis Environmental Safety & Health - Manager Air Quality Water Quality Waste Management Safety & Health Fossil Fuel - Manager Transportation Coal Planning & Procurement Director Asset Management Business Development Gas Supply - Manager Gas Supply Finance & Corporate Services - Senior Vice President Engineering & Construction - Vice President Power Plant Design Electrical Engineering & Transmission Planning Construction & Services General Counsel & Secretary - Vice President Government Affairs Vice President & Controller Performance Management Accounting Budget Financial Communications Systems/Special Projects Treasurer Banking Financial Planning & Investments Investor Services Tax - Manager Income Tax Compliance Excise Taxes Ad Valorem Taxes Internal Audit - Manager Internal Audit 26 - B ANNUAL REPORT OF AMEREN SERVICES COMPANY For Year Ended December 31, 1999 Organization Chart Human Resources - Vice President Compensation and Personnel Administration Employee Benefits Staffing & Organizational Development Communication & Training Services Industrial Relations - Vice President Merger Coordination - Vice President 26- C ANNUAL REPORT OF AMEREN SERVICES COMPANY Methods of Allocation Composite - Energy Sales, Customers and Employees Based on three components of equal weighting: energy sales, average customers and number of employees. Customers Based on a year-end count of electric and gas customers. Sales Based on the year-end energy sales. Employees Based on the number of full time employees monthly. Labor Based on yearly Operation & Maintenance labor costs. Revenue Based on total revenue earned by operating company. Total Capitalization Based on total operating company capitalization value at year-end. Total Assets Based on total operating company assets at year- end. Construction Expenditures Based on yearly construction expenditures by each operating company. Peak Load Based on Peak Load at each operating center. Each operating power plant peak generation provides electric ratio. Gas ratio is derived from system peak at a transportation intake point for Ameren's system. Generating Capacity Based on nameplate generating capacity at each power plant. Gas Throughput Based on total gas usage including transportation customers at each Ameren operating gas system. CPU Cycles Based on CPU units processed by computer monthly for each separate computer system. Current Tax Expense Based on yearly tax expenses for each operating company. Vehicle Ratio Based on number of vehicles assigned to each operating company. 26 - D ANNUAL REPORT OF AMEREN SERVICES COMPANY Signature Clause Pursuant to the requirements of the Public Utility Holding Company Act of 1935 and the rules and regulations of the Securities and Exchange Commission issued thereunder, the undersigned company has duly caused this report to be signed on its behalf by the undersigned officer thereunto duly authorized. Ameren Services Company ---------------------------------- (Name of Reporting Company) By: /s/ Warner L. Baxter ---------------------------------- (Signature of Signing Officer) Warner L. Baxter, Controller ---------------------------------- (Printed Name and Title of Signing Officer) Date: May 10, 1999 --------------------------------------------- 27 of 27 pages EX-27 2 FINANCIAL DATA SCHEDULE - OPUR 2
OPUR2 AMEREN SERVICES PUBLIC UTILITY HOLDING COMPANIES FORM U-13-60 AND AMENDMENTS ARTICLE OPUR2 (Thousands of Dollars) USD JAN-1-1998 12-MOS DEC-31-1998 DEC-31-1998 1 PER-BOOK 19,611 0 43,159 48 0 63,259 16,232 0 0 2,387 25,197 9,443 0 63,259 222,128 0 16 222,144 59,188 (505) 163,461 222,144 0 178,121 44,023 222,144 1,330
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