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Ameren Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 10, 2010 01:17PM
Ameren Corp. (AEE) filed Quarterly Report for the period ended 2010-03-31.
Highlight of Business Operations:
Amerens earnings in the first quarter of 2010 of $102 million, or $0.43 per share, were lower than its earnings in the first quarter of 2009 of $141 million, or $0.66 per share. The decline in first quarter 2010 earnings, compared to the
The ICC issued an order in the Ameren Illinois Utilities electric and natural gas delivery rate cases on April 29, 2010. The order, as corrected by the ICC on May 6, 2010, authorized the Ameren Illinois Utilities to increase revenue by an aggregate of $15 million annually, as calculated by the ICC. This is well below the Ameren Illinois Utilities revised request of $130 million and the $56 million proposed by the ICCs administrative law judges. The Ameren Illinois Utilities are disappointed in the decision and are taking action to mitigate its effects. The Ameren Illinois Utilities responses include requesting an ICC stay of certain decisions in its order and rehearing of the rate order. The Ameren Illinois Utilities will also reduce planned spending to levels more closely in-line with the revenue and related cash flow levels authorized by the rate order.
Amerens Merchant Generation segment has reduced its estimated capital costs for the period 2010 to 2014 by $435 million, compared to those disclosed in the Form 10-K. The Merchant Generation segment expects to fully comply with the MPS through the use of dry sorbent injection SO2 reduction technology at its Joppa power plant and the installation of scrubbers at its Newton power plant by 2015. Amerens Merchant Generation segment announced in May 2010 that it will reduce staffing by approximately 75 positions. The reduction of these positions, coupled with other planned spending reductions, is expected to reduce 2010 other operations and maintenance expenses to approximately $300 million in 2010. This is approximately 10% lower than other operations and maintenance expenses in 2009. As these recent cost cutting actions again demonstrate, Ameren remains focused on minimizing costs, both operating and capital, at its Merchant Generation business.
Net income attributable to Ameren Corporation decreased to $102 million, or 43 cents per share, in the first quarter of 2010, from $141 million, or 66 cents per share, in the first quarter of 2009. Net income attributable to Ameren Corporation in the Merchant Generation segment declined by $49 million from the same period in 2009, while net income attributable to Ameren Corporation in the first quarter of 2010 increased in the Illinois Regulated and Missouri Regulated segments by $8 million and $6 million, respectively, from the prior-year period.