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Ameren 10-Q 2008
ameren10q06302008.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
 
(X)  Quarterly report pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
for the Quarterly Period Ended June 30, 2008
OR
(   )  Transition report pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
for the transition period from ____ to ____.

 
Commission
File Number
Exact name of registrant as specified in its charter;
State of Incorporation;
Address and Telephone Number
 
IRS Employer
Identification No.
     
1-14756
Ameren Corporation
43-1723446
 
(Missouri Corporation)
 
 
1901 Chouteau Avenue
 
 
St. Louis, Missouri 63103
 
 
(314) 621-3222
 
     
1-2967
Union Electric Company
43-0559760
 
(Missouri Corporation)
 
 
1901 Chouteau Avenue
 
 
St. Louis, Missouri 63103
 
 
(314) 621-3222
 
     
1-3672
Central Illinois Public Service Company
37-0211380
 
(Illinois Corporation)
 
 
607 East Adams Street
 
 
Springfield, Illinois 62739
 
 
(888) 789-2477
 
     
333-56594
Ameren Energy Generating Company
37-1395586
 
(Illinois Corporation)
 
 
1901 Chouteau Avenue
 
 
St. Louis, Missouri 63103
 
 
(314) 621-3222
 
     
2-95569
CILCORP Inc.
37-1169387
 
(Illinois Corporation)
 
 
300 Liberty Street
 
 
Peoria, Illinois 61602
 
 
(309) 677-5271
 
     
1-2732
Central Illinois Light Company
37-0211050
 
(Illinois Corporation)
 
 
300 Liberty Street
 
 
Peoria, Illinois 61602
 
 
(309) 677-5271
 
     
1-3004
Illinois Power Company
37-0344645
 
(Illinois Corporation)
 
 
370 South Main Street
 
 
Decatur, Illinois 62523
 
 
(217) 424-6600
 
 

 
Indicate by check mark whether the registrants: (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) have been subject to such filing require­ments for the past 90 days.     Yes   (X) No   (  )
 
Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “accelerated filer,” “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Securities Exchange Act of 1934.>

 
Large
Accelerated Filer
Accelerated
Filer
Non-Accelerated
Filer
Smaller Reporting
Company
Ameren Corporation
(X)
(   )
(   )
(   )
Union Electric Company
(   )
(   )
(X)
(   )
Central Illinois Public Service Company
(   )
(   )
(X)
(   )
Ameren Energy Generating Company
(   )
(   )
(X)
(   )
CILCORP Inc.
(   )
(   )
(X)
(   )
Central Illinois Light Company
(   )
(   )
(X)
(   )
Illinois Power Company
(   )
(   )
(X)
(   )

Indicate by check mark whether each registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).

Ameren Corporation
Yes
(   )
No
(X)
Union Electric Company
Yes
(   )
No
(X)
Central Illinois Public Service Company
Yes
(   )
No
(X)
Ameren Energy Generating Company
Yes
(   )
No
(X)
CILCORP Inc.
Yes
(   )
No
(X)
Central Illinois Light Company
Yes
(   )
No
(X)
Illinois Power Company
Yes
(   )
No
(X)

 
The number of shares outstanding of each registrant’s classes of common stock as of July 31, 2008, was as follows:

Ameren Corporation
Common stock, $.01 par value per share – 210,208,319
   
Union Electric Company
Common stock, $5 par value per share, held by Ameren
Corporation (parent company of the registrant) – 102,123,834
   
Central Illinois Public Service Company
Common stock, no par value, held by Ameren
Corporation (parent company of the registrant) – 25,452,373
   
Ameren Energy Generating Company
Common stock, no par value, held by Ameren Energy
Resources Company, LLC (parent company of the
registrant and subsidiary of Ameren
Corporation) – 2,000
   
CILCORP Inc.
Common stock, no par value, held by Ameren
Corporation (parent company of the registrant) – 1,000
   
Central Illinois Light Company
Common stock, no par value, held by CILCORP Inc.
(parent company of the registrant and subsidiary of
Ameren Corporation) – 13,563,871
   
Illinois Power Company
Common stock, no par value, held by Ameren
Corporation (parent company of the registrant) – 23,000,000
 
 
 


 
Ameren Energy Generating Company and CILCORP Inc. meet the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and are therefore filing this form with the reduced disclosure format allowed under that General Instruction.

This combined Form 10-Q is separately filed by Ameren Corporation, Union Electric Company, Central Illinois Public Service Company, Ameren Energy Generating Company, CILCORP Inc., Central Illinois Light Company, and Illinois Power Company. Each registrant hereto is filing on its own behalf all of the information contained in this quarterly report that relates to such registrant. Each registrant hereto is not filing any information that does not relate to such registrant, and therefore makes no representation as to any such information.
 

 

 

TABLE OF CONTENTS
 
Page
GLOSSARY OF TERMS AND ABBREVIATIONS.....................................................................................................................................................................................................
5
   
Forward-looking Statements..........................................................................................................................................................................................................................................
7
   
PART I   Financial Information
 
   
Item 1.     Financial Statements (Unaudited)
 
Ameren Corporation
 
Consolidated Statement of Income...............................................................................................................................................................................................................
8
Consolidated Balance Sheet..........................................................................................................................................................................................................................
9
Consolidated Statement of Cash Flows.......................................................................................................................................................................................................
10
Union Electric Company
 
Consolidated Statement of Income...............................................................................................................................................................................................................
11
Consolidated Balance Sheet..........................................................................................................................................................................................................................
12
Consolidated Statement of Cash Flows.......................................................................................................................................................................................................
13
Central Illinois Public Service Company
 
Statement of Income.......................................................................................................................................................................................................................................
14
Balance Sheet..................................................................................................................................................................................................................................................
15
Statement of Cash Flows................................................................................................................................................................................................................................
16
Ameren Energy Generating Company
 
Consolidated Statement of Income...............................................................................................................................................................................................................
17
Consolidated Balance Sheet..........................................................................................................................................................................................................................
18
Consolidated Statement of Cash Flows.......................................................................................................................................................................................................
19
CILCORP Inc.
 
Consolidated Statement of Income...............................................................................................................................................................................................................
20
Consolidated Balance Sheet..........................................................................................................................................................................................................................
21
Consolidated Statement of Cash Flows.......................................................................................................................................................................................................
22
Central Illinois Light Company
 
Consolidated Statement of Income..............................................................................................................................................................................................................
23
Consolidated Balance Sheet.........................................................................................................................................................................................................................
24
Consolidated Statement of Cash Flows.......................................................................................................................................................................................................
25
Illinois Power Company
 
Consolidated Statement of Income..............................................................................................................................................................................................................
26
Consolidated Balance Sheet..........................................................................................................................................................................................................................
27
Consolidated Statement of Cash Flows.......................................................................................................................................................................................................
28
   
Combined Notes to Financial Statements....................................................................................................................................................................................................
29
   
Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations............................................................................................................
60
Item 3.    Quantitative and Qualitative Disclosures About Market Risk.................................................................................................................................................................
85
Item 4 and
 
Item 4T.  Controls and Procedures...............................................................................................................................................................................................................................
90
   
PART II Other Information
 
   
Item 1.    Legal Proceedings...........................................................................................................................................................................................................................................
90
Item 1A. Risk Factors......................................................................................................................................................................................................................................................
91
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.................................................................................................................................................................
91
Item 4.    Submission of Matters to a Vote of Security Holders...............................................................................................................................................................................
91
Item 6.    Exhibits..............................................................................................................................................................................................................................................................
93
   
Signatures.........................................................................................................................................................................................................................................................................
96
 
This Form 10-Q contains “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements should be read with the cautionary statements and important factors included on page 7 of this Form 10-Q under the heading “Forward-looking Statements.” Forward-looking statements are all statements other than statements of historical fact, including those statements that are identified by the use of the words “anticipates,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” and similar expressions.
 
 
4

GLOSSARY OF TERMS AND ABBREVIATIONS

We use the words “our,” “we” or “us” with respect to certain information that relates to all Ameren Companies, as defined below. When appropriate, subsidiaries of Ameren are named specifically as we discuss their various business activities.

Ameren Companies – The individual registrants within the Ameren consolidated group.
ARO – Asset retirement obligations.
CIPSCO  CIPSCO Inc., the former parent of CIPS.
CO2 – Carbon dioxide.
COLA – Combined construction and operating license application.
CT – Combustion turbine electric generation equipment used primarily for peaking capacity.
DOE – Department of Energy, a U.S. government agency.
Dynegy – Dynegy Inc.
EPA – Environmental Protection Agency, a U.S. government agency.
Exchange Act – Securities Exchange Act of 1934, as amended.
FERC – The Federal Energy Regulatory Commission, a U.S. government agency.
Fitch – Fitch Ratings, a credit rating agency.
Gigawatthour – One thousand megawatthours.
 
5

 
years of frozen electric rates, as of January 2, 2007. The Illinois electric settlement agreement, which became effective on August 28, 2007, was designed to avoid new rate rollback and freeze legislation and legislation that would impose a tax on electric generation in Illinois. The settlement addresses the issue of future power procurement, and it includes a comprehensive rate relief and customer assistance program.
Illinois EPA – Illinois Environmental Protection Agency, a state government agency.
IP  Illinois Power Company, an Ameren Corporation subsidiary. IP operates a rate-regulated electric and natural gas transmission and distribution business in Illinois as AmerenIP.
Megawatthour – One thousand kilowatthours.
MGP  Manufactured gas plant.
MISO  Midwest Independent Transmission System Operator, Inc.
Moody’s  Moody’s Investors Service Inc., a credit rating agency.
NOx  Nitrogen oxide.
NRC – Nuclear Regulatory Commission, a U.S. government agency.
NYMEX – New York Mercantile Exchange.
OCI  Other comprehensive income (loss) as defined by GAAP.
Off-system revenues – Revenues from nonnative load sales.
RFP – Request for proposal.
S&P – Standard & Poor’s Ratings Services, a credit rating agency that is a division of The McGraw-Hill Companies, Inc.
SEC – Securities and Exchange Commission, a U.S. government agency.
SO2  Sulfur dioxide.
UE  Union Electric Company, an Ameren Corporation subsidiary that operates a rate-regulated electric generation, transmission and distribution business, and a rate-regulated natural gas transmission and distribution business in Missouri as AmerenUE.



6


FORWARD-LOOKING STATEMENTS

Statements in this report not based on historical facts are considered “forward-looking” and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking statements have been made in good faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include (without limitation) statements as to future expectations, beliefs, plans, strategies, objectives, events, conditions, and financial performance. In connection with the “safe harbor” provi­sions of the Private Securities Litigation Reform Act of 1995, we are providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. The following factors, in addition to those discussed under Risk Factors and elsewhere in this report and in our other filings with the SEC, could cause actual results to differ materially from management expectations suggested in such forward-looking statements:

·  
regulatory or legislative actions, including changes in regulatory policies and ratemaking determinations, such as the outcome of pending UE, CIPS, CILCO and IP rate proceedings or future legislative actions that seek to limit or reverse rate increases;
·  
uncertainty as to the effect of implementation of the Illinois electric settlement agreement on Ameren, the Ameren Illinois Utilities, Genco and AERG, including implementation of a new power procurement process in Illinois that began in 2008;
·  
changes in laws and other governmental actions, including monetary and fiscal policies;
·  
changes in laws or regulations that adversely affect the ability of electric distribution companies and other purchasers of wholesale electricity to pay their suppliers, including UE and Marketing Company;
·  
enactment of legislation taxing electric generators, in Illinois or elsewhere;
·  
the effects of increased competition in the future due to, among other things, deregulation of certain aspects of our business at both the state and federal levels, and the implementation of deregulation, such as occurred when the electric rate freeze and power supply contracts expired in Illinois at the end of 2006;
·  
the effects of participation in the MISO;
·  
the cost and availability of fuel such as coal, natural gas, and enriched uranium used to produce electricity; the cost and availability of purchased power and natural gas for distribution; and the level and volatility of future market prices for such commodities, including the ability to recover the costs for such commodities;
·  
the effectiveness of our risk management strategies and the use of financial and derivative instruments;
·  
prices for power in the Midwest, including forward prices;
·  
business and economic conditions, including their impact on interest rates;
·  
disruptions of the capital markets or other events that make the Ameren Companies’ access to necessary capital more difficult or costly;
·  
the impact of the adoption of new accounting standards and the application of appropriate technical accounting rules and guidance;
·  
actions of credit rating agencies and the effects of such actions;
·  
weather conditions and other natural phenomena;
·  
the impact of system outages caused by severe weather conditions or other events;
·  
generation plant construction, installation and performance, including costs associated with UE’s Taum Sauk pumped-storage hydroelectric plant incident and the plant’s future operation;
·  
recoverability through insurance of costs associated with UE’s Taum Sauk pumped-storage hydroelectric plant incident;
·  
operation of UE’s nuclear power facility, including planned and unplanned outages, and decommissioning costs;
·  
the effects of strategic initiatives, including acquisitions and divestitures;
·  
the impact of current environmental regulations on utilities and power generating companies and the expectation that more stringent requirements, including those related to greenhouse gases, will be introduced over time, which could have a negative financial effect;
·  
labor disputes, future wage and employee benefits costs, including changes in discount rates and returns on benefit plan assets;
·  
the inability of our counterparties and affiliates to meet their obligations with respect to contracts and financial instruments;
·  
the cost and availability of transmission capacity for the energy generated by the Ameren Companies’ facilities or required to satisfy energy sales made by the Ameren Companies;
·  
legal and administrative proceedings; and
·  
acts of sabotage, war, terrorism or intentionally disruptive acts.

Given these uncertainties, undue reliance should not be placed on these forward-looking statements. Except to the extent required by the federal securities laws, we undertake no obligation to update or revise publicly any forward-looking statements to reflect new information or future events.

7

PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.
 
AMEREN CORPORATION
 
CONSOLIDATED STATEMENT OF INCOME
 
(Unaudited) (In millions, except per share amounts)
 
                       
 
Three Months Ended
June 30,
   
Six Months Ended
June 30,
 
 
2008
   
2007
   
2008
   
2007
 
Operating Revenues:
                     
Electric
$ 1,545     $ 1,519     $ 3,012     $ 2,982  
Gas
  243       209       855       770  
Total operating revenues
  1,788       1,728       3,867       3,752  
                               
Operating Expenses:
                             
Fuel
  200       263       502       526  
Coal contract settlement
  (60 )     -       (60 )     -  
Purchased power
  306       314       593       687  
Gas purchased for resale
  165       133       624       554  
Other operations and maintenance
  469       420       891       809  
Depreciation and amortization
  178       176       354       359  
Taxes other than income taxes
  89       96       202       198  
Total operating expenses
  1,347       1,402       3,106       3,133  
Operating Income
  441       326       761       619  
Other Income and Expenses:
                             
Miscellaneous income
  21       20       42       34  
Miscellaneous expense
  (8 )     (8 )     (13 )     (13 )
Total other income
  13       12       29       21  
Interest Charges
  118       108       218       206  
Income Before Income Taxes, Minority Interest
                             
and Preferred Dividends of Subsidiaries
  336       230       572       434  
Income Taxes
  119       78       206       149  
Income Before Minority Interest and Preferred
                             
Dividends of Subsidiaries
  217       152       366       285  
Minority Interest and Preferred Dividends of Subsidiaries
  11       9       22       19  
Net Income
$ 206     $ 143     $ 344     $ 266  
                               
Earnings per Common Share – Basic and Diluted
$ 0.98     $ 0.69     $ 1.64     $ 1.29  
Dividends per Common Share
$ 0.635     $ 0.635     $ 1.270     $ 1.270  
Average Common Shares Outstanding
  209.5       207.1       209.1       206.9  
                               
 
The accompanying notes are an integral part of these consolidated financial statements.
 
8

 


AMEREN CORPORATION
 
CONSOLIDATED BALANCE SHEET
(Unaudited) (In millions, except per share amounts)
 
           
 
June 30,
   
December 31,
 
 
2008
   
2007
 
ASSETS
         
Current Assets:
         
Cash and cash equivalents
$ 205     $ 355  
Accounts receivable – trade (less allowance for doubtful
             
accounts of $26 and $22, respectively)
  529       570  
Unbilled revenue
  389       359  
Miscellaneous accounts and notes receivable
  376       280  
Materials and supplies
  719       735  
Mark-to-market derivative assets
  273       35  
Other current assets
  275       146  
Total current assets
  2,766       2,480  
Property and Plant, Net
  15,566       15,069  
Investments and Other Assets:
             
Nuclear decommissioning trust fund
  284       307  
Goodwill
  831       831  
Intangible assets
  177       198  
Regulatory assets
  1,081       1,158  
Other assets
  940       685  
Total investments and other assets
  3,313       3,179  
TOTAL ASSETS
$ 21,645     $ 20,728  
               
LIABILITIES AND STOCKHOLDERS' EQUITY
             
Current Liabilities:
             
Current maturities of long-term debt
$ 285     $ 221  
Short-term debt
  1,450       1,472  
Accounts and wages payable
  527       687  
Taxes accrued
  111       84  
Mark-to-market derivative liabilities
  236       24  
Other current liabilities
  469       414  
Total current liabilities
  3,078       2,902  
Long-term Debt, Net
  6,146       5,691  
Preferred Stock of Subsidiary Subject to Mandatory Redemption
  16       16  
Deferred Credits and Other Liabilities:
             
Accumulated deferred income taxes, net
  2,104       2,046  
Accumulated deferred investment tax credits
  104       109  
Regulatory liabilities
  1,437       1,240  
Asset retirement obligations
  576       562  
Accrued pension and other postretirement benefits
  758       839  
Other deferred credits and liabilities
  390       354  
Total deferred credits and other liabilities
  5,369       5,150  
Preferred Stock of Subsidiaries Not Subject to Mandatory Redemption
  195       195  
Minority Interest in Consolidated Subsidiaries
  24       22  
Commitments and Contingencies (Notes 2, 8, 9 and 10)
             
Stockholders' Equity:
             
Common stock, $.01 par value, 400.0 shares authorized –
             
shares outstanding of 210.1 and 208.3, respectively
  2       2  
Other paid-in capital, principally premium on common stock
  4,693       4,604  
Retained earnings
  2,188       2,110  
Accumulated other comprehensive income (loss)
  (66 )     36  
Total stockholders’ equity
  6,817       6,752  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 21,645     $ 20,728  
 
The accompanying notes are an integral part of these consolidated financial statements.
 
9

 


AMEREN CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) (In millions)
           
 
Six Months Ended
 
 
June 30,
 
 
2008
   
2007
 
Cash Flows From Operating Activities:
         
Net income
$ 344     $ 266  
Adjustments to reconcile net income to net cash
             
provided by operating activities:
             
Gain on sales of emission allowances
  (2 )     (2 )
Mark-to-market gain on derivatives
  (94 )     (1 )
Coal contract settlement
  (60 )     -  
Depreciation and amortization
  364       357  
Amortization of nuclear fuel
  20       15  
Amortization of debt issuance costs and premium/discounts
  8       10  
Deferred income taxes and investment tax credits, net
  107       (8 )
Minority interest
  16       13  
Other
  4       7  
Changes in assets and liabilities:
             
Receivables
  15       (131 )
Materials and supplies
  16       35  
Accounts and wages payable
  (64 )     (62 )
Taxes accrued, net
  (58 )     59  
Assets, other
  32       29  
Liabilities, other
  65       19  
Pension and other postretirement benefit obligations
  15       50  
Counterparty collateral asset
  (205 )     (97 )
Counterparty collateral liability
  79       -  
Taum Sauk insurance receivable, net
  (107 )     (16 )
Net cash provided by operating activities
  495       543  
Cash Flows From Investing Activities:
             
Capital expenditures
  (798 )     (715 )
Nuclear fuel expenditures
  (123 )     (24 )
Purchases of securities – nuclear decommissioning trust fund
  (247 )     (75 )
Sales of securities – nuclear decommissioning trust fund
  231       65  
Purchases of emission allowances
  (2 )     (9 )
Sales of emission allowances
  2       3  
Other
  2       1  
Net cash used in investing activities
  (935 )     (754 )
Cash Flows From Financing Activities:
             
Dividends on common stock
  (266 )     (263 )
Capital issuance costs
  (9 )     (3 )
Short-term debt, net
  (22 )     1,007  
Dividends paid to minority interest holder
  (15 )     (10 )
Redemptions, repurchases, and maturities of long-term debt
  (808 )     (443 )
Issuances:
             
Common stock
  75       48  
Long-term debt
  1,335       425  
Net cash provided by financing activities
  290       761  
Net change in cash and cash equivalents
  (150 )     550  
Cash and cash equivalents at beginning of year
  355       137  
Cash and cash equivalents at end of period
$ 205     $ 687  
               
 
The accompanying notes are an integral part of these consolidated financial statements.
 
10

 



UNION ELECTRIC COMPANY
 
CONSOLIDATED STATEMENT OF INCOME
 
(Unaudited) (In millions)
 
                       
                       
 
Three Months Ended
June 30,
   
Six Months Ended
June 30,
 
 
2008
   
2007
   
2008
   
2007
 
Operating Revenues:
                     
Electric - excluding off-system
$ 589     $ 579     $ 1,079     $ 1,030  
Electric - off-system
  147       89       298       211  
Gas
  35       29       118       105  
Other
  -       -       -       1  
Total operating revenues
  771       697       1,495       1,347  
Operating Expenses:
                             
Fuel
  104       143       251       268  
Purchased power
  37       29       90       69  
Gas purchased for resale
  18       15       73       64  
Other operations and maintenance
  238       222       455       446  
Depreciation and amortization
  82       84       163       171  
    Taxes other than income taxes
  60       60       120       117  
Total operating expenses
  539       553       1,152       1,135  
Operating Income
  232       144       343       212  
Other Income and Expenses:
                             
Miscellaneous income
  15       12       29       20  
Miscellaneous expense
  (2 )     (6 )     (4 )     (8 )
Total other income
  13       6       25       12  
Interest Charges
  50       51       91       97  
Income Before Income Taxes and Equity
                             
   in Income of Unconsolidated Investment
  195       99       277       127  
Income Taxes
  71       30       100       39  
Income Before Equity in Income
                             
   of Unconsolidated Investment
  124       69       177       88  
Equity in Income of Unconsolidated Investment,
                             
Net of Taxes
  -       12       11       26  
Net Income
  124       81       188       114  
Preferred Stock Dividends
  2       2       3       3  
Net Income Available to Common Stockholder
$ 122     $ 79     $ 185     $ 111  
 
The accompanying notes as they relate to UE are an integral part of these consolidated financial statements.
 
11

 


UNION ELECTRIC COMPANY
 
 CONSOLIDATED BALANCE SHEET
 
(Unaudited) (In millions, except per share amounts)
 
           
 
June 30,
   
December 31,
 
 
2008
   
2007
 
ASSETS
         
Current Assets:
         
Cash and cash equivalents
$ -     $ 185  
Accounts receivable – trade (less allowance for doubtful
             
accounts of $7 and $6, respectively)
  176       191  
Unbilled revenue
  165       118  
Miscellaneous accounts and notes receivable
  268       213  
Advances to money pool
  -       15  
Accounts receivable – affiliates
  28       90  
Materials and supplies
  318       301  
Mark-to-market derivative assets
  106       7  
Other current assets
  75       43  
Total current assets
  1,136       1,163  
Property and Plant, Net
  8,477       8,189  
Investments and Other Assets:
             
Nuclear decommissioning trust fund
  284       307  
Intercompany note receivable – affiliate
  30       -  
Intangible assets
  52       56  
Regulatory assets
  677       697  
Other assets
  393       491  
Total investments and other assets
  1,436       1,551  
TOTAL ASSETS
$ 11,049     $ 10,903  
               
LIABILITIES AND STOCKHOLDERS' EQUITY
             
Current Liabilities:
             
Current maturities of long-term debt
$ 4     $ 152  
Short-term debt
  33       82  
Intercompany note payable – Ameren
  50       -  
Accounts and wages payable
  143       315  
Accounts payable – affiliates
  85       212  
Taxes accrued
  78       78  
Accrued interest
  56       47  
Taum Sauk pumped-storage hydroelectric facility liability
  35       103  
Mark-to-market derivative liabilities
  101       1  
Other current liabilities
  58       58  
Total current liabilities
  643       1,048  
Long-term Debt, Net
  3,677       3,208  
Deferred Credits and Other Liabilities:
             
Accumulated deferred income taxes, net
  1,347       1,273  
Accumulated deferred investment tax credits
  82       85  
Regulatory liabilities
  907       865  
Asset retirement obligations
  489       476  
Accrued pension and other postretirement benefits
  237       297  
Other deferred credits and liabilities
  45       50  
Total deferred credits and other liabilities
  3,107       3,046  
Commitments and Contingencies (Notes 2, 8, 9 and 10)
             
Stockholders' Equity:
             
Common stock, $5 par value, 150.0 shares authorized – 102.1 shares outstanding
  511       511  
Preferred stock not subject to mandatory redemption
  113       113  
Other paid-in capital, principally premium on common stock
  1,119       1,119  
Retained earnings
  1,894       1,855  
Accumulated other comprehensive income (loss)
  (15 )     3  
Total stockholders' equity
  3,622       3,601  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 11,049     $ 10,903  
 
The accompanying notes as they relate to UE are an integral part of these consolidated financial statements.
 
12

 


UNION ELECTRIC COMPANY
 
CONSOLIDATED STATEMENT OF CASH FLOWS
 
(Unaudited) (In millions)
 
           
 
Six Months Ended
 
 
June 30,
 
 
2008
   
2007
 
Cash Flows From Operating Activities:
         
Net income
$ 188     $ 114  
Adjustments to reconcile net income to net cash
             
provided by operating activities:
             
Gain on sales of emission allowances
  (1 )     -  
Mark-to-market gain on derivatives
  (73 )     -  
Depreciation and amortization
  163       171  
Amortization of nuclear fuel
  20       15  
Amortization of debt issuance costs and premium/discounts
  3       3  
Deferred income taxes and investment tax credits, net
  74       15  
Other
  (9 )     -  
Changes in assets and liabilities:
             
Receivables
  66       (110 )
Materials and supplies
  (17 )     (31 )
Accounts and wages payable
  (253 )     (129 )
Taxes accrued, net
  (31 )     74  
Assets, other
  53       55  
Liabilities, other
  26       (31 )
Pension and other postretirement benefit obligations
  13       15  
Taum Sauk insurance receivable, net
  (107 )     (16 )
Net cash provided by operating activities
  115       145  
Cash Flows From Investing Activities:
             
Capital expenditures
  (377 )     (355 )
Nuclear fuel expenditures
  (123 )     (24 )
Changes in money pool advances
  -       6  
Proceeds from intercompany note receivable
  6       -  
Purchases of securities – nuclear decommissioning trust fund
  (247 )     (75 )
Sales of securities – nuclear decommissioning trust fund
  231       65  
Sales of emission allowances
  1       2  
Net cash used in investing activities
  (509 )     (381 )
Cash Flows From Financing Activities:
             
Dividends on common stock
  (105 )     (127 )
Dividends on preferred stock
  (3 )     (3 )
Capital issuance costs
  (5 )     (3 )
Short-term debt, net
  (49 )     192  
Intercompany note payable – Ameren, net
  50       (40 )
Redemptions, repurchases, and maturities of long-term debt
  (378 )     -  
Issuances of long-term debt
  699       425  
Net cash provided by financing activities
  209       444  
Net change in cash and cash equivalents
  (185 )     208  
Cash and cash equivalents at beginning of year
  185       1  
Cash and cash equivalents at end of period
$ -     $ 209  
               
 
The accompanying notes as they relate to UE are an integral part of these consolidated financial statements.
 
13

 


CENTRAL ILLINOIS PUBLIC SERVICE COMPANY
 
STATEMENT OF INCOME
 
(Unaudited) (In millions)
 
                       
 
Three Months Ended
   
Six Months Ended
 
 
June 30,
   
June 30,
 
 
2008
   
2007
   
2008
   
2007
 
Operating Revenues:
                     
Electric
$ 169     $ 193     $ 349     $ 404  
Gas
  38       36       148       137  
Other
  -       -       -       2  
Total operating revenues
  207       229       497       543  
Operating Expenses:
                             
Purchased power
  108       127       231       275  
Gas purchased for resale
  24       21       104       95  
Other operations and maintenance
  48       41       98       84  
Depreciation and amortization
  17       16       34       33  
Taxes other than income taxes
  7       9       19       18  
Total operating expenses
  204       214       486       505  
Operating Income
  3       15       11       38  
Other Income and Expenses:
                             
Miscellaneous income
  3       5       6       8  
Miscellaneous expense
  (2 )     (1 )     (2 )     (1 )
Total other income
  1       4       4       7  
Interest Charges
  8       10       15       18  
Income (Loss) Before Income Taxes
  (4 )     9       -       27  
Income Taxes (Benefit)
  (1 )     4       -       10  
Net Income (Loss)
  (3 )     5       -       17  
Preferred Stock Dividends
  -       -       1       1  
Net Income (Loss) Available to Common Stockholder
$ (3 )   $ 5     $ (1 )   $ 16  
                               
The accompanying notes as they relate to CIPS are an integral part of these consolidated financial statements.

 
 
14

 


CENTRAL ILLINOIS PUBLIC SERVICE COMPANY
 
 BALANCE SHEET
 
(Unaudited) (In millions)
 
           
 
June 30,
   
December 31,
 
 
2008
   
2007
 
ASSETS
         
Current Assets:
         
Cash and cash equivalents
$ -     $ 26  
Accounts receivable – trade (less allowance for doubtful
             
accounts of $6 and $5, respectively)
  69       62  
Unbilled revenue
  49       66  
Miscellaneous accounts and notes receivable
  19       19  
Accounts receivable – affiliates
  4       9  
Current portion of intercompany note receivable – Genco
  42       39  
Current portion of intercompany tax receivable – Genco
  9       9  
Materials and supplies
  48       66  
Mark-to-market derivative assets with affiliate
  38       1  
Other current assets
  19       15  
Total current assets
  297       312  
Property and Plant, Net
  1,184       1,174  
Investments and Other Assets:
             
Intercompany note receivable – Genco
  45       87  
Intercompany tax receivable – Genco
  100       105  
Regulatory assets
  83       113  
Other assets
  79       69  
Total investments and other assets
  307