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Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS
We use derivatives to manage the risk of changes in market prices for natural gas, power, and uranium, as well as the risk of changes in rail transportation surcharges through fuel oil hedges. Such price fluctuations may cause the following:
•an unrealized appreciation or depreciation of our contracted commitments to purchase or sell when purchase or sale prices under the commitments are compared with current commodity prices;
•market values of natural gas and uranium inventories that differ from the cost of those commodities in inventory;
•actual cash outlays for the purchase of these commodities that differ from anticipated cash outlays; and
•actual off-system sales revenues that differ from anticipated revenues.
The derivatives that we use to hedge these risks are governed by our risk management policies for forward contracts, futures, options, and swaps. Our net positions are continually assessed within our structured hedging programs to determine whether new or offsetting transactions are required. The goal of the hedging program is generally to mitigate financial risks while ensuring that sufficient volumes are available to meet our requirements. Contracts we enter into as part of our risk management program may be settled financially, settled by physical delivery, or net settled with the counterparty.
All contracts considered to be derivative instruments are required to be recorded on the balance sheet at their fair values, unless the NPNS exception applies. Many of our physical contracts, such as our purchased power contracts, qualify for the NPNS exception to derivative accounting rules. The revenue or expense on NPNS contracts is recognized at the contract price upon physical delivery. The following disclosures exclude NPNS contracts and other non-derivative commodity contracts that are accounted for under the accrual method of accounting.
If we determine that a contract meets the definition of a derivative and is not eligible for the NPNS exception, we review the contract to determine whether the resulting gains or losses qualify for regulatory deferral. Derivative contracts that qualify for regulatory deferral are recorded at fair value, with changes in fair value recorded as regulatory assets or liabilities in the period in which the change occurs. We believe derivative losses and gains deferred as regulatory assets and liabilities are probable of recovery, or refund, through future rates charged to customers. Regulatory assets and liabilities are amortized to operating income as related losses and gains are reflected in rates charged to customers. Therefore, gains and losses on these derivatives have no effect on operating income. As of September 30, 2022, and December 31, 2021, all contracts that met the definition of a derivative and were not eligible for the NPNS exception received regulatory deferral. Cash flows for all derivative financial instruments are classified in cash flows from operating activities.
The following table presents open gross commodity contract volumes by commodity type for derivative assets and liabilities as of September 30, 2022, and December 31, 2021. As of September 30, 2022, these contracts extended through October 2024, October 2027, May 2032 and March 2024 for fuel oils, natural gas, power and uranium, respectively:
Quantity (in millions)
September 30, 2022December 31, 2021
CommodityAmeren MissouriAmeren IllinoisAmerenAmeren MissouriAmeren IllinoisAmeren
Fuel oils (in gallons)19 — 19 30 — 30 
Natural gas (in mmbtu)43 144 187 35 144 179 
Power (in MWhs)2 6 8 6 6 12 
Uranium (pounds in thousands)406 — 406 586 — 586 
The following table presents the carrying value and balance sheet location of all derivative commodity contracts, none of which were designated as hedging instruments, as of September 30, 2022, and December 31, 2021:
September 30, 2022December 31, 2021
Balance Sheet LocationAmeren
Missouri		Ameren
Illinois		AmerenAmeren
Missouri		Ameren
Illinois		Ameren
Fuel oilsOther current assets12 — 12 8 — 8 
Other assets3 — 3 5 — 5 
Natural gasMark-to-market derivative assets(a)57 (a)(a)28 (a)
Other current assets14 — 71 7 — 35 
Other assets13 21 34 5 13 18 
PowerMark-to-market derivative assets(a)11 (a)(a)— (a)
Other current assets28 — 39 23 — 23 
Other assets— 5 5 — — — 
UraniumOther current assets2 — 2 — — — 
Other assets1 — 1 1 — 1 
Total assets$73 $94 $167 $49 $41 $90 
Fuel oilsOther deferred credits and liabilities1 — 1 — — — 
Natural gasMark-to-market derivative liabilities2 (a)(a)2 (a)(a)
Other current liabilities— 9 11 — 6 8 
Other deferred credits and liabilities1 3 4 1 2 3 
PowerMark-to-market derivative liabilities111 (a)(a)50 (a)(a)
Other current liabilities— — 111 — 9 59 
Other deferred credits and liabilities14 36 50 23 108 131 
UraniumMark-to-market derivative liabilities— (a)(a)1 (a)(a)
Other current liabilities— — — — — 1 
Total liabilities$129 $48 $177 $77 $125 $202 
(a)Balance sheet line item not applicable to registrant.
We believe that entering into master netting arrangements or similar agreements mitigates the level of financial loss that could result from default by allowing net settlement of derivative assets and liabilities. These master netting arrangements allow the counterparties to net settle sale and purchase transactions. Further, collateral requirements are calculated at the master netting arrangement or similar agreement level by counterparty.
The following table provides the recognized gross derivative balances and the net amounts of those derivatives subject to an enforceable master netting arrangement or similar agreement as of September 30, 2022, and December 31, 2021:
Gross Amounts Not Offset in the Balance Sheet
Commodity Contracts Eligible to be OffsetGross Amounts Recognized in the Balance SheetDerivative Instruments
Cash Collateral Received/Posted(a)
Net
Amount
September 30, 2022
Assets:
Ameren Missouri$73 $18 $2 $53 
Ameren Illinois94 13 1 80 
Ameren$167 $31 $3 $133 
Liabilities:
Ameren Missouri$129 $18 $99 $12 
Ameren Illinois48 13 — 35 
Ameren$177 $31 $99 $47 
December 31, 2021
Assets:
Ameren Missouri$49 $15 $— $34 
Ameren Illinois41 4 — 37 
Ameren$90 $19 $— $71 
Liabilities:
Ameren Missouri$77 $15 $47 $15 
Ameren Illinois125 4 — 121 
Ameren$202 $19 $47 $136 
(a)Cash collateral received reduces gross asset balances and is included in “Other current liabilities” and “Other deferred credits and liabilities” on the balance sheet. Cash collateral posted reduces gross liability balances and is included in “Current collateral assets” and “Other assets” on the balance sheet for Ameren and Ameren Missouri and “Other current assets” and “Other assets” for Ameren Illinois.
Credit Risk
In determining our concentrations of credit risk related to derivative instruments, we review our individual counterparties and categorize each counterparty into groupings according to the primary business in which each engages. As of September 30, 2022, if counterparty groups were to fail completely to perform on contracts, Ameren, Ameren Missouri, and Ameren Illinois’ maximum exposure related to derivative assets, predominantly from financial institutions, was $142 million, $55 million, and $87 million, respectively. The potential loss on counterparty exposures may be reduced or eliminated by the application of master netting arrangements or similar agreements and collateral held. As of September 30, 2022, the potential loss after consideration of the application of master netting arrangements or similar agreements and collateral held for Ameren, Ameren Missouri, and Ameren Illinois was $124 million, $43 million, and $81 million, respectively.
Certain of our derivative instruments contain collateral provisions tied to the Ameren Companies’ credit ratings. If our credit ratings were downgraded below investment grade, or if a counterparty with reasonable grounds for uncertainty regarding our ability to satisfy an obligation requested adequate assurance of performance, additional collateral postings might be required. The additional collateral required is the net liability position allowed under master netting arrangements or similar agreements, assuming (1) the credit risk-related contingent features underlying these arrangements were triggered and (2) those counterparties with rights to do so requested collateral. As of September 30, 2022, the aggregate fair value of derivative instruments with credit risk-related contingent features in a gross liability position, the cash collateral posted, and the aggregate amount of additional collateral that counterparties could require were each immaterial to Ameren, Ameren Missouri, and Ameren Illinois.