XML 89 R38.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Fair Value Inputs, Assets and Liabilities, Quantitative Information
The following table describes the valuation techniques and unobservable inputs utilized by the Ameren Companies for the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy for the periods ended December 31, 2017 and 2016:
 
 
Fair Value
 
 
 
 
Weighted
 
 
Assets
Liabilities
 
Valuation Technique(s)
Unobservable Input
Range
Average
Level 3 Derivative asset and liability – commodity contracts(a):
 
 
 
2017
 
 
 
 
 
 
 
 
 
Fuel oils
$
3

$
—

 
Option model
Volatilities(%)(b)
20 – 26
22
 
 
 
 
 
Discounted cash flow
Counterparty credit risk(%)(c)(d)
0.12 – 0.72
0.41
 
 
 
 
 
 
Ameren Missouri credit risk(%)(c)(d)
0.37
(e)
 
Natural Gas
1

(4
)
 
Option model
Volatilities(%)(b)
26 – 46
37
 



 

Nodal basis($/mmbtu)(c)
(0.50) – (0.30)
(0.40)
 



 
Discounted cash flow
Nodal basis($/mmbtu)(b)
(1.20) – 0.10
(1)
 



 

Counterparty credit risk(%)(c)(d)
0.37 – 0.92
0.53
 



 

Ameren credit risk(%)(c)(d)
0.37
(e)
 
Power(f)
8

(196
)
 
Discounted cash flow
Average forward peak and off-peak pricing – forwards/swaps($/MWh)(g)
24 – 46
28
 
 
 
 
 
 
Estimated auction price for FTRs($/MW)(b)
(65) – 1,823
251
 
 
 
 
 
 
Nodal basis($/MWh)(g)
(10) – 0
(2)
 
 
 
 
 
 
Counterparty credit risk(%)(c)(d)
0.28
(e)
 
 
 
 
 
 
Ameren Illinois credit risk(%)(c)(d)
0.37
(e)
 
 
 
 
 
Fundamental energy production model
Estimated future natural gas prices($/mmbtu)(b)
3 – 4
3
 
 
 
 
 
 
Escalation rate(%)(b)(h)
5
(e)
 
 
 
 
 
Contract price allocation
Estimated renewable energy credit costs($/credit)(b)
5 – 7
6
2016
 
 
 
 
 
 
 
 
 
Fuel oils
$
1

$
—

 
Option model
Volatilities(%)(b)
24 – 66
28
 
 
 
 
 
Discounted cash flow
Counterparty credit risk(%)(c)(d)
0.13 – 0.22
0.15
 
 
 
 
 
 
Ameren Missouri credit risk(%)(c)(d)
0.38
(e)
 
 
 
 
 
 
Escalation rate(%)(b)(i)
(2) – 2
0
 
Natural Gas
$
1

$
(1
)
 
Option model
Volatilities(%)(b)
31 – 66
36
 
 
 
 
 
 
Nodal basis($/mmbtu)(b)
(0.40) – (0.10)
(0.20)
 
 
 
 
 
Discounted cash flow
Nodal basis($/mmbtu)(b)
(0.80) – 0
(0.50)
 
 
 
 
 
 
Counterparty credit risk(%)(c)(d)
0.13 – 8
1
 
 
 
 
 
 
Ameren Illinois credit risk(%)(c)(d)
0.38
(e)
 
Power(f)
9

(187
)
 
Discounted cash flow
Average forward peak and off-peak pricing – forwards/swaps($/MWh)(g)
26 – 44
29
 
 
 
 
 
 
Estimated auction price for FTRs($/MW)(b)
(71) – 5,270
125
 
 
 
 
 
 
Nodal basis($/MWh)(g)
(6) – 0
(2)
 
 
 
 
 
 
Ameren Illinois credit risk(%)(c)(d)
0.38
(e)
 
 
 
 
 
Fundamental energy production model
Estimated future natural gas prices($/mmbtu)(b)
3 – 4
3
 
 
 
 
 
 
Escalation rate(%)(b)(h)
5
(e)
 
 
 
 
 
Contract price allocation
Estimated renewable energy credit costs($/credit)(b)
5 – 7
6
 
Uranium
—

(4
)
 
Option model
Volatilities(%)(b)
24
(e)
 
 
Fair Value
 
 
 
 
Weighted
 
 
Assets
Liabilities
 
Valuation Technique(s)
Unobservable Input
Range
Average
 
 
 
 
 
Discounted cash flow
Average forward uranium pricing($/pound)(b)
22 – 24
22
 
 
 
 
 
 
Ameren Missouri credit risk(%)(c)(d)
0.38
(e)
(a)
The derivative asset and liability balances are presented net of counterparty credit considerations.
(b)
Generally, significant increases (decreases) in this input in isolation would result in a significantly higher (lower) fair value measurement.
(c)
Generally, significant increases (decreases) in this input in isolation would result in a significantly lower (higher) fair value measurement.
(d)
Counterparty credit risk is applied only to counterparties with derivative asset balances. Ameren Missouri and Ameren Illinois credit risk is applied only to counterparties with derivative liability balances.
(e)
Not applicable.
(f)
Power valuations use visible third-party pricing evaluated by month for peak and off-peak demand through 2021. Valuations beyond 2021 use fundamentally modeled pricing by month for peak and off-peak demand.
(g)
Ameren Missouri and Ameren Illinois power contracts respond differently to unobservable input changes because of their opposing positions.
(h)
Escalation rate applies to power prices in 2031 and beyond.
(i)
Escalation rate applies to fuel oil prices in 2019 and beyond.
Schedule Of Fair Value Hierarchy Of Assets And Liabilities Measured At Fair Value On Recurring Basis
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, 2017:
 
 
 
Quoted Prices in
Active Markets for
Identical Assets
or Liabilities
(Level 1)
 
Significant Other
Observable
Inputs
(Level 2)
 
Significant Other
Unobservable
Inputs
(Level 3)
 
Total
 
Assets:
 
 
 
 
 
 
 
 
 
 
Ameren
Derivative assets – commodity contracts(a):
 
 
 
 
 
 
 
 
 
 
Fuel oils
 
$
4

 
$
—

 
$
3

 
$
7

 
 
Natural gas
 
—

 
—

 
1

 
1

 
 
Power
 
—

 
1

 
8

 
9

 
 
Total derivative assets – commodity contracts
 
$
4

 
$
1

 
$
12

 
$
17

 
 
Nuclear decommissioning trust fund:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
2

 
$
—

 
$
—

 
$
2

 
 
Equity securities:
 
 
 
 
 
 
 
 
 
 
U.S. large capitalization
 
468

 
—

 
—

 
468

 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency securities
 
—

 
125

 
—

 
125

 
 
Corporate bonds
 
—

 
82

 
—

 
82

 
 
Other
 
—

 
25

 
—

 
25

 
 
Total nuclear decommissioning trust fund
 
$
470

 
$
232

 
$
—

 
$
702

(b) 
 
Total Ameren
 
$
474

 
$
233

 
$
12

 
$
719

 
Ameren Missouri
Derivative assets – commodity contracts(a):
 
 
 
 
 
 
 
 
 
 
Fuel oils
 
$
4

 
$
—

 
$
3

 
$
7

 
 
Natural gas
 
—

 
—

 
1

 
1

 
 
Power
 
—

 
1

 
8

 
9

 
 
Total derivative assets – commodity contracts
 
$
4

 
$
1

 
$
12

 
$
17

 
 
 
 
Quoted Prices in
Active Markets for
Identical Assets
or Liabilities
(Level 1)
 
Significant Other
Observable
Inputs
(Level 2)
 
Significant Other
Unobservable
Inputs
(Level 3)
 
Total
 
 
Nuclear decommissioning trust fund:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
2

 
$
—

 
$
—

 
$
2

 
 
Equity securities:
 
 
 
 
 
 
 
 
 
 
U.S. large capitalization
 
468

 
—

 
—

 
468

 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency securities
 
—

 
125

 
—

 
125

 
 
Corporate bonds
 
—

 
82

 
—

 
82

 
 
Other
 
—

 
25

 
—

 
25

 
 
Total nuclear decommissioning trust fund
 
$
470

 
$
232

 
$
—

 
$
702

(b) 
 
Total Ameren Missouri
 
$
474

 
$
233

 
$
12

 
$
719

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Ameren
Derivative liabilities – commodity contracts(a):
 
 
 
 
 
 
 
 
 
 
Natural gas
 
1

 
25

 
4

 
30

 
 
Power
 
—

 
—

 
196

 
196

 
 
Total Ameren
 
$
1

 
$
25

 
$
200

 
$
226

 
Ameren Missouri
Derivative liabilities – commodity contracts(a):
 
 
 
 
 
 
 
 
 
 
Natural gas
 
—

 
7

 
1

 
8

 
 
Power
 
—

 
—

 
1

 
1

 
 
Total Ameren Missouri
 
$
—

 
$
7

 
$
2

 
$
9

 
Ameren Illinois
Derivative liabilities – commodity contracts(a):
 
 
 
 
 
 
 
 
 
 
Natural gas
 
$
1

 
$
18

 
$
3

 
$
22

 
 
Power
 
—

 
—

 
195

 
195

 
 
Total Ameren Illinois
 
$
1

 
$
18

 
$
198

 
$
217

 
(a)
The derivative asset and liability balances are presented net of counterparty credit considerations.
(b)
Balance excludes $2 million of receivables, payables, and accrued income, net.
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, 2016:
 
 
 
Quoted Prices in
Active Markets for
Identical Assets
or Liabilities
(Level 1)
 
Significant Other
Observable
Inputs
(Level 2)
 
Significant Other
Unobservable
Inputs
(Level 3)
 
Total
 
Assets:
 
 
 
 
 
 
 
 
 
 
Ameren
Derivative assets – commodity contracts(a):
 
 
 
 
 
 
 
 
 
 
Fuel oils
 
$
2

 
$
—

 
$
1

 
$
3

 
 
Natural gas
 
2

 
12

 
1

 
15

 
 
Power
 
—

 
—

 
9

 
9

 
 
Total derivative assets – commodity contracts
 
$
4

 
$
12

 
$
11

 
$
27

 
 
 
 
Quoted Prices in
Active Markets for
Identical Assets
or Liabilities
(Level 1)
 
Significant Other
Observable
Inputs
(Level 2)
 
Significant Other
Unobservable
Inputs
(Level 3)
 
Total
 
 
Nuclear decommissioning trust fund:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1

 
$
—

 
$
—

 
$
1

 
 
Equity securities:
 
 
 
 
 
 
 
 
 
 
U.S. large capitalization
 
408

 
—

 
—

 
408

 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency securities
 
—

 
112

 
—

 
112

 
 
Corporate bonds
 
—

 
67

 
—

 
67

 
 
Other
 
—

 
17

 
—

 
17

 
 
Total nuclear decommissioning trust fund
 
$
409

 
$
196

 
$
—

 
$
605

(b) 
 
Total Ameren
 
$
413

 
$
208

 
$
11

 
$
632

 
Ameren Missouri
Derivative assets – commodity contracts(a):
 
 
 
 
 
 
 
 
 
 
Fuel oils
 
$
2

 
$
—

 
$
1

 
$
3

 
 
Natural gas
 
—

 
1

 
1

 
2

 
 
Power
 
—

 
—

 
9

 
9

 
 
Total derivative assets – commodity contracts
 
$
2

 
$
1

 
$
11

 
$
14

 
 
Nuclear decommissioning trust fund:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1

 
$
—

 
$
—

 
$
1

 
 
Equity securities:
 
 
 
 
 
 
 
 
 
 
U.S. large capitalization
 
408

 
—

 
—

 
408

 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency securities
 
—

 
112

 
—

 
112

 
 
Corporate bonds
 
—

 
67

 
—

 
67

 
 
Other
 
—

 
17

 
—

 
17

 
 
Total nuclear decommissioning trust fund
 
$
409

 
$
196

 
$
—

 
$
605

(b) 
 
Total Ameren Missouri
 
$
411

 
$
197

 
$
11

 
$
619

 
Ameren Illinois
Derivative assets – commodity contracts(a):
 
 
 
 
 
 
 
 
 
 
Natural gas
 
$
2

 
$
11

 
$
—

 
$
13

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Ameren
Derivative liabilities – commodity contracts(a):
 
 
 
 
 
 
 
 
 
 
Fuel oils
 
$
5

 
$
—

 
$
—

 
$
5

 
 
Natural gas
 
—

 
13

 
1

 
14

 
 
Power
 
—

 
1

 
187

 
188

 
 
Uranium
 
—

 
—

 
4

 
4

 
 
Total Ameren
 
$
5

 
$
14

 
$
192

 
$
211

 
Ameren Missouri
Derivative liabilities – commodity contracts(a):
 
 
 
 
 
 
 
 
 
 
Fuel oils
 
$
5

 
$
—

 
$
—

 
$
5

 
 
Natural gas
 
—

 
6

 
—

 
6

 
 
Power
 
—

 
1

 
2

 
3

 
 
Uranium
 
—

 
—

 
4

 
4

 
 
Total Ameren Missouri
 
$
5

 
$
7

 
$
6

 
$
18

 
Ameren Illinois
Derivative liabilities – commodity contracts(a):
 
 
 
 
 
 
 
 
 
 
Natural gas
 
$
—

 
$
7

 
$
1

 
$
8

 
 
Power
 
—

 
—

 
185

 
185

 
 
Total Ameren Illinois
 
$
—

 
$
7

 
$
186

 
$
193

 
(a)
The derivative asset and liability balances are presented net of counterparty credit considerations.
(b)
Balance excludes $2 million of receivables, payables, and accrued income, net.
Schedule Of Changes In The Fair Value Of Financial Assets And Liabilities Classified As Level 3 In The Fair Value Hierarchy
The following table summarizes the changes in the fair value of power financial assets and liabilities classified as Level 3 in the fair value hierarchy:
 
 
Net Derivative Commodity Contracts
 
 
Ameren
Missouri
 
Ameren
Illinois
 
Ameren
For the year ended December 31, 2016
 
 
 
 
 
 
Beginning balance at January 1, 2016
$
16

$
(170
)
$
(154
)
Realized and unrealized gains (losses) included in regulatory assets/liabilities
 
(1
)
 
(29
)
 
(30
)
Purchases
 
13

 
—

 
13

Settlements
 
(21
)
 
14

 
(7
)
Ending balance at December 31, 2016
$
7

$
(185
)
$
(178
)
Change in unrealized gains (losses) related to assets/liabilities held at December 31, 2016
$
—

$
(27
)
$
(27
)
For the year ended December 31, 2017
 
 
 
 
 
 
Beginning balance at January 1, 2017
$
7

$
(185
)
$
(178
)
Realized and unrealized gains (losses) included in regulatory assets/liabilities
 
(4
)
 
(21
)
 
(25
)
Purchases
 
14

 
—

 
14

Sales
 
1

 
—

 
1

Settlements
 
(11
)
 
11

 
—

Ending balance at December 31, 2017
$
7

$
(195
)
$
(188
)
Change in unrealized gains (losses) related to assets/liabilities held at December 31, 2017
$
—

$
(22
)
$
(22
)
Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt And Preferred Stock
The following table presents the carrying amounts and estimated fair values of our long-term debt, capital lease obligations, and preferred stock at December 31, 2017 and 2016:
 
2017
 
2016
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
Ameren:
 
 
 
 
 
 
 
Long-term debt and capital lease obligations (including current portion)(a)
$
7,935

 
$
8,531

 
$
7,276

 
$
7,772

Preferred stock(b)
142

 
131

 
142

 
131

Ameren Missouri:
 
 
 
 
 
 
 
Long-term debt and capital lease obligations (including current portion)(a)
$
3,961

 
$
4,348

 
$
3,994

 
$
4,304

Preferred stock
80

 
80

 
80

 
79

Ameren Illinois:
 
 
 
 
 
 
 
Long-term debt (including current portion)
$
2,830

 
$
3,028

 
$
2,588

 
$
2,765

Preferred stock
62

 
51

 
62

 
52

(a)
Ameren and Ameren Missouri have two CTs under separate capital lease agreements. The capital lease obligations as of December 31, 2017 and 2016, were $276 million and $282 million, respectively. In addition, Ameren and Ameren Missouri have investments in debt securities, classified as held-to-maturity and recorded in “Other Assets” that are related to the capital lease obligation CTs from the city of Bowling Green and Audrain County. As of December 31, 2017 and 2016, the fair value of these investments approximate carrying value of $276 million and $282 million, respectively.
(b)
Preferred stock is recorded in “Noncontrolling Interests” on the consolidated balance sheet.