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Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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, 2023, and December 31, 2022, 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, 2023, and December 31, 2022. As of September 30, 2023, these contracts extended through October 2026, October 2029, May 2032 and March 2024 for fuel oils, natural gas, power and uranium, respectively.
Quantity (in millions)
September 30, 2023December 31, 2022
CommodityAmeren MissouriAmeren IllinoisAmerenAmeren MissouriAmeren IllinoisAmeren
Fuel oils (in gallons)19 — 19 18 — 18 
Natural gas (in mmbtu)52 213 265 48 157 205 
Power (in MWhs)1 5 6 1 6 7 
Uranium (pounds in thousands)186 — 186 514 — 514 
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, 2023, and December 31, 2022:
September 30, 2023December 31, 2022
Balance Sheet LocationAmeren
Missouri		Ameren
Illinois		AmerenAmeren
Missouri		Ameren
Illinois		Ameren
Fuel oilsOther current assets$6 $— $6 $13 $— $13 
Other assets2 — 2 3 — 3 
Natural gasOther current assets1 6 7 7 23 30 
Other assets5 3 8 9 11 20 
PowerOther current assets7 — 7 14 2 16 
Other assets— — — — 4 4 
UraniumOther current assets5 — 5 2 — 2 
Other assets— — — 1 — 1 
Total assets$26 $9 $35 $49 $40 $89 
Natural gasOther current liabilities7 25 32 7 20 27 
Other deferred credits and liabilities6 16 22 2 9 11 
PowerOther current liabilities7 8 15 59 2 61 
Other deferred credits and liabilities— 56 56 — 37 37 
Total liabilities$20 $105 $125 $68 $68 $136 
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, 2023, and December 31, 2022:
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, 2023
Assets:
Ameren Missouri$26 $6 $— $20 
Ameren Illinois9 5 — 4 
Ameren$35 $11 $— $24 
Liabilities:
Ameren Missouri$20 $6 $5 $9 
Ameren Illinois105 5 — 100 
Ameren$125 $11 $5 $109 
December 31, 2022
Assets:
Ameren Missouri$49 $9 $— $40 
Ameren Illinois40 20 — 20 
Ameren$89 $29 $— $60 
Liabilities:
Ameren Missouri$68 $9 $56 $3 
Ameren Illinois68 20 — 48 
Ameren$136 $29 $56 $51 
(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, 2023, if counterparty groups were to fail completely to perform on contracts, the Ameren Companies’ maximum exposure related to derivative assets, predominantly from financial institutions, would have been immaterial with or without consideration of the application of master netting arrangements or similar agreements and collateral held.
Certain of our derivative instruments contain collateral provisions tied to the Ameren Companies’ credit ratings. If our credit ratings were downgraded below investment grade, or if a counterparty with reasonable grounds for uncertainty regarding our ability to satisfy an obligation requested adequate assurance of performance, additional collateral postings might be required. The additional collateral required is the net liability position allowed under master netting arrangements or similar agreements, assuming (1) the credit risk-related contingent features underlying these arrangements were triggered and (2) those counterparties with rights to do so requested collateral. The following table presents, as of September 30, 2023, the aggregate fair value of all derivative instruments with credit risk-related contingent features in a gross liability position, the cash collateral posted, and the aggregate amount of additional collateral that counterparties could require:
Aggregate Fair Value of
Derivative Liabilities(a)
Cash
Collateral Posted
Potential Aggregate Amount of
Additional Collateral Required(b)
Ameren Missouri$14 $— $8 
Ameren Illinois41 — 35 
Ameren$55 $— $43 
(a)Before consideration of master netting arrangements or similar agreements.
(b)As collateral requirements with certain counterparties are based on master netting arrangements or similar agreements, the aggregate amount of additional collateral required to be posted is determined after consideration of the effects of such arrangements